Analysis Between Forward Contract Hedging and Open Market towards Account Payable at PT. Sekawan
With the rising trend of globalization, the scarcity of raw materials and the ability to access raw materials with lower purchase prices encourages some firms to undergo international transactions. Those Firms needs to be watched closely since this issue creates uncertainty regarding future cash outflows. There is a strategy is called ΓÇÜ├ä├╢?├æ??hedgingΓÇÜ├ä├╢?├æ??, which is a part of the derivative instruments, that can reduce this uncertainty. the actual amount without hedging will be compared with the supposed amount if hedging was to be implemented under the forward contract rate. the purpose of this comparison is to determine which method creates lower payment of debts. the import transaction at PT. Sekawan is chosen as the object to be researched in the period of 2011 to 2013. Based on the calculation, the total amount of Account payable that must be paid if PT. Sekawan implements Forward Contract hedging are IDR 3,548,905,204, -, and when the company decide to implement Open Market, the amount of payable account are IDR 3,478,469,933, -. With the amount difference of IDR 70,435,361, the company will earn more profit. the company still consider forward contract hedging strategy for the account payable with large amount to avoid the extreme exchange rate fluctuation since the difference is not too significant.
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