Perusahaan Listrik Negara, the state power utility, signed on Friday a US dollar hedging facility agreement worth $950 million with three state lenders in a move to shield the company against foreign exchange volatility.
Bank Mandiri, Bank Negara Indonesia and Bank Rakyat Indonesia will provide the facilities. PLN will join a small number of other state-controlled companies that have hedged their foreign debts, such as Krakatau Steel and flag carrier Garuda Indonesia.
“[The hedge] is needed for our monthly expenses. We have high exposure to foreign exchange,” said Sofyan Basir, PLN’s president director.