{
    "success": true,
    "data": {
        "id": 2061638,
        "msgid": "bi-cuts-hedging-costs-attracting-us-12bn-in-foreign-capital-1793281829",
        "date": "2026-10-29 19:35:00",
        "title": "BI Cuts Hedging Costs, Attracting US$12bn in Foreign Capital",
        "author": "",
        "source": "CNBC",
        "tags": "",
        "topic": "Finance",
        "summary": "Bank Indonesia Governor Destry Damayanti says the central bank\u2019s hedging incentives have drawn nearly US$12 billion into Indonesia since their introduction in July, including about US$2 billion through DNDF and almost US$10 billion through swaps. BI has increased premium reductions on hedging instruments to make Indonesian assets more attractive to foreign investors amid global uncertainty, offering a targeted alternative to raising interest rates.",
        "content": "<p>Bank Indonesia Governor Destry Damayanti said hedging incentives had\nboosted the inflow of dollars into Indonesia.<\/p>\n<p>Since the incentives were introduced in July and subsequently\nstrengthened, BI had attracted nearly US$12 billion by October 2026,\nDestry said. This comprised around US$2 billion through DNDF and almost\nUS$10 billion through swaps.<\/p>\n<p>The figures demonstrate the effectiveness of Bank Indonesia\u2019s hedging\npolicy in attracting foreign capital through portfolio-policy\ninnovation.<\/p>\n<p>\u201cWe are innovating our policy. If we want to attract inflows, we have\nto make our portfolio attractive. If we cannot raise yields further,\nthen we can work on hedging costs,\u201d she said at KADIN\u2019s national\nleadership meeting in Jakarta on Thursday (29 October 2026).<\/p>\n<p>The initiative was introduced because Bank Indonesia considers that\nforeign capital inflows require protection through swaps or DNDF.<\/p>\n<p>\u201cThey can enter in two ways: they can swap in, bringing dollars and\nthen exchanging them for rupiah. The dollars are held by Bank Indonesia,\nand they use the rupiah to invest,\u201d Destry explained.<\/p>\n<p>Destry added that the hedging policy was one targeted measure and an\nalternative to raising interest rates in the face of current global\nuncertainty.<\/p>\n<p>Under its latest hedging policy, BI has also increased incentives for\nDNDF hedging transactions with the central bank when they support\nunderlying foreign funding. The coverage includes portfolio inflows,\nforeign loans taken out by banks and foreign direct investment\n(FDI).<\/p>\n<p>According to Destry, BI has increased the premium reduction for DNDF\nhedging to 40 per cent from 25 per cent for a six-month tenor. For a\n12-month tenor, the reduction has risen to 45 per cent from 30 per\ncent.<\/p>\n<p>BI is also continuing incentives for conventional buy-swap hedging\ninstruments with the central bank in transactions supporting underlying\nforeign funding.<\/p>\n<p>The premium reductions for these instruments are set at 15 per cent\nfor a three-month tenor, 20 per cent for six months and 25 per cent for\n12 months.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/bi-cuts-hedging-costs-attracting-us-12bn-in-foreign-capital-1793281829",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}