Indonesian currency collapse exposes severe hedge weakness
The rupiah’s 17-year low against the US dollar is placing great pressure on Indonesian companies, notably property developers, who need to pay off their FX debt, credit agencies are warning. Many are also painfully under-hedged, they added.
On September 4, Indonesia’s currency dived to a 17-year low against the US dollar, dropping to 14,297 despite a brief rise in late August, offering more bad news for local companies with large US dollar payables and rupiah receivables.
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