Pertamina Lowers USD Purchase

Annisa ayu artanti    •    29 September 2015 17:10 WIB
Pertamina Lowers USD Purchase
Vice President of Corporate Communication Pertamina Wianda Pusponegoro. (Photo: Husen Miftahudin), Jakarta: PT Pertamina (Persero) is to lower the activity of currency purchase transactions of US dollars, up to 50 percent. It is done to respond the weakening rupiah against USD.

Vice President of Corporate Communication Pertamina Wianda Pusponegoro said, Pertamina so far has to conduct currency purchase of USD in a huge amount, used to procure raw oil and oil production and gas, as well as investment projects funding.

"Lately the fluctuation of rupiah against USD is very dynamic, whereas rupiah keeps on depreciating to undervalue (below its fundamental value). As a form of risk mitigation, Pertamina, which previously conducted hedging corporate actions, within the near future will prepare to reduce the USD purchase transactions up to 50 percent from its normal purchase," mentioned Wianda in a written statement in Jakarta, Monday (9/28/2015).

Wianda explained that so far, Pertamina has conducted currency purchase through three state-owned companies: Bank Mandiri, BRI and BNI, where it is reported monthly or weekly.

Since last June, Wianda added, Pertamina has implemented the hedging transactions by purchasing forward the currencies, as it obtained a forex line banking facility for a significant amount of hedging transactions from the three banks.

Although reducing currency purchase, he continued, Pertamina can still fulfill the requirements of payment both in rupiah or foreign exchange to their partners. In tackling the difference between the currency needs and purchase of USD, Pertamina is to work together with the banking parties.

In the end, the cooperation will use the scheme of trade financing by utilizing the short term credit facility provided by the banking institution, be it state-owned companies, national private sector or international banks to support Pertamina's funding.

"So, in the future, Pertanian is to utilize the acquired credit line commitment, then to search for USD in the spot market," Wianda concluded.