Indonesia urged to go further to build hedging market

Banks warn that bringing call spreads onshore is not enough and could produce distortions

Under construction: financial engineering is needed that may be difficult under the current regulatory framework

Market participants are warning of a distorted derivatives market in Indonesia if the central bank implements proposed reforms to bring certain hedging transactions onshore without providing enough flexibility or fostering a broad range of end-users.

"Before bringing more products onshore, it is more important to fix the balance between supply and demand. In terms of swaps, introducing an onshore call spread is going to reduce [the number of] people buying dollar forwards, so we have to find the

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 or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options


Want to know what’s included in our free membership? Click here

This address will be used to create your account

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