Indonesian corporate hedging to pick up following election

Importers will increase hedging activity amid greater rupiah volatility


Foreign exchange volatility has increased in the lead-up to the Indonesian presidential election on July 9, with local corporates adopting a cautious approach to hedging reserves, say market participants.

"A Jokowi win with a divided government is likely priced in by the forex markets," says Geoff Kendrick, head of Asia forex and rates strategy at Morgan Stanley in Hong Kong. "In contrast, a Prabowo win may create capital outflows, driving USD/IDR spot above 12,300. We think a Jokowi win would

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here:

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: