Why excessive un-hedged borrowings won't be a concern for Indonesian banks

They've kept their loan-deposit ratios low.

According to Moody's, the top four Indonesian banks have kept their loan-deposit ratios low in recent quarters.

"As illustrated in the graph, the top four are in an advantageous position with foreign currency deposits exceeding foreign currency loans. This situation reduces our concerns about excessive un-hedged borrowings, which could become problematic, given a depreciating IDR."