Rupiah slump sends Indonesian borrowers back home

Singapore

THE double whammy of a slumping currency and rising hedging costs is denting the appeal of overseas financing for Indonesian borrowers.

Telecom operator Indosat turned to the local rupiah market on Thursday to refinance its US dollar debt. Its move comes as Indonesia is pressuring local companies to rein in their foreign currency liabilities, and bankers expect more local companies to follow suit.