JAKARTA, Oct 3 : Financial services firms in Indonesia have been ordered to intensively analyse various scenarios in which US dollar exposure and high energy prices could impact their performance, the sector regulator said on Monday.
Financial Services Authority (OJK) deputy chair Mirza Adityaswara said in a news conference that firms have to closely monitor their exposures through bonds and foreign exchanges.
"We also asked the firms to pay attention to loan risks in sectors that consume high energy...and those firms whose performance is closely linked to the cycle of commodity prices," he said.
"Debtors who don't have revenues in dollars, should be careful."
The measure follows a recent government order for state-owned enterprises to reduce U.S. dollar exposure by diversifying their sources of funds to currencies other than U.S. dollar.
The rupiah weakened 0.49% by 0736 GMT on Monday to 15,300 per dollar. Earlier in the session, it hit 15,305 per dollar, its weakest since April 2020.
BI has raised interest rates twice by a total of 75 basis points since August to rein in domestic inflation and support the rupiah.
- Reuters
Created by Tan KW | Apr 27, 2024
Created by Tan KW | Apr 27, 2024