Top central banker defends Indonesia’s hedging requirement

Bank Indonesia’s senior deputy says the country’s $168bn foreign debt burden is safer than it looks

Rupiah mandate: Mirza Adityaswara says Bank Indonesia is reducing "unnecessary demand" for the US dollar

One of Indonesia's top central bankers has defended a decision requiring domestic companies to hedge 25% of their foreign liabilities while playing down the country's external debt burden.

Speaking at a Credit Suisse conference in Hong Kong on April 7, Bank Indonesia's senior deputy governor, Mirza Adityaswara, said 80% of companies reporting offshore debt already comply with the mandatory hedging requirement, which one audience member described as unique.

He said that while hedging is "not

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