REFILE-Indonesia to temporarily let state-firms hedge some forex exposure
(Refiling to fix headline)
JAKARTA, Sept 24 (Reuters) - Indonesia will temporarily allow state-owned firms, including oil company PT Pertamina, to hedge some foreign exchange exposure in view of the recent sharp falls in the rupiah.
The move reverses a 2008 policy which barred state-owned firms from such practices, arguing that this could lead to losses for the state.
State-owned Enterprises Minister Dahlan Iskan told Reuters on Tuesday that the move would only be in effect until conditions normalise and that the firms were still not allowed to hedge foreign currency debt.
"We will allow them to hedge during this volatile time because it will help the rupiah position," the minister said.
In recent weeks, the rupiah has fallen sharply in recent weeks. Since the start of the year, it has lost about 16 percent against the dollar, making it Asia's worst performing currency.
The rupiah's tumble has been driven by concerns over Indonesia's widening current account deficit, itself a result of high fuel imports by the former OPEC member.
The Finance Ministry has estimated that Pertamina , the country's biggest oil importer, needs on average $150 million a day for its transactions. (Reporting by Fathiya Dahrul; Writing by Janeman Latul; Editing by Jonathan Thatcher and Richard Borsuk)