REPUBLIKA.CO.ID, JAKARTA - Government Bonds of Foreign Exchange, locally known by the acronym SUN Fx has been issued by government as an alternative for exporters to save their foreign currency in foreign exchange (forex) market. During this time, there are no instruments in domestic forex market to force Indonesian citizens to put their currency abroad.

SUN Fx also aimed to reduce funds repatriation by foreign companies. Executive Director of Communications in Bank Indonesia (BI), Difi A Johansyah said that it was better to buy SUN Fx than tp sell foreign currency abroad. SUN Fx can also be an alternative for banks, pension funds, mutual funds and insurance to put their currency in Indonesia.

Previously, banks, which own foreign currency, used their funds for credit and place it in inter-banks. That's why banks, which have excess foreign currency, will put their funds abroad. 

"The high amount can help to improve domestic currency and hold USD not to go out of the country," Johansyah said.

In November 25, government offered auction indicative ceiling of 450 million USD in form of SUN with tenor of three years and coupon rate of 3.5 percent. However, government just won 190 million USD. 

The first auction did not reach the target as investors still saw secondary market condition. Tenor that was offered has not varied. Investors also considered short term dollar needs in the end of the year. Satya Festiani/Mutia Ramadhani

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