Rational for Thrifty Dollar Spending
PLN and Pertamina are safeguarding their financial conditions against exchange rate depreciation: from hedging to exchanging bonds.
The decision of State Electricity Company (PLN) to offer to restructure its debt securities in May made Sarwono Sudarto feel grateful. The Finance Director of PLN was relieved that the benefit of the global bond reprofiling policy could now be felt as the rupiah exchange rate staggered. Last week, the rupiah exchange rate against the US dollar broke to Rp15,000 in the spot market.
Without the policy, PLN’s finance would have been depressed...