For executives of Indonesia’s state-owned enterprises, hedging their contracts in foreign currencies against possible depreciation of the rupiah has always been a nerve-racking venture.
There have been no regulations explicitly banning the executives from hedging, but if things go wrong they can find themselves facing criminal charges for misuse of government money.
But the Jakarta government has now given the executives explicit permission to hedge, “as long as it doesn’t involve kickbacks and corruption,” say officials.
