The majority of Indonesian project sponsors troubled by exchange risk. Despite of international banks have offered investment loans to selected creditworthy projects, the project sponsors are facing the problem of exchange risk mitigation, taking the experience of the past economic and financial crisis.
In fact, all currencies are exposed to exchange risk, including USD, EUR, JPY, CHF, GBP, CAD, AUD and the historical exchange rates performance may experienced more volatile in the capital market.
Developing countries\’s currencies recently become more stable, however, the 1997 economic and financial crisis become the only reference to the project sponsors due to the lack of knowledge in economic monetary.
All toll roads, selected power plants, water treatment, including all projects with local currency revenue are troubled by the exchange risk.
This, perhaps, to be one of the most potential prospects by taking the great accident of the 1997 economic and financial crisis.
The majority of Indonesian project sponsors troubled by exchange risk. Despite of international banks have offered investment loans to selected creditworthy projects, the project sponsors are facing the problem of exchange risk mitigation, taking the experience of the past economic and financial crisis.
In fact, all currencies are exposed to exchange risk, including USD, EUR, JPY, CHF, GBP, CAD, AUD and the historical exchange rates performance may experienced more volatile in the capital market.
Developing countries\’s currencies recently become more stable, however, the 1997 economic and financial crisis become the only reference to the project sponsors due to the lack of knowledge in economic monetary.
All toll roads, selected power plants, water treatment, including all projects with local currency revenue are troubled by the exchange risk.
This, perhaps, to be one of the most potential prospects by taking the great accident of the 1997 economic and financial crisis.
Johanes L. Sitanggang
kjls@indo.net.id