Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 15

Search results for: Nadhifah A. Nugraha

15 Designing Electronic Kanban in Assembly Line Tailboom at XYZ Corp to Reducing Lead Time

Authors: Nadhifah A. Nugraha, Dida D. Damayanti, Widia Juliani

Abstract:

Airplanes manufacturing is growing along with the increasing demand from consumers. The helicopter's tail called Tailboom is a product of the helicopter division at XYZ Corp, where the Tailboom assembly line is a pull system. Based on observations of existing conditions that occur at XYZ Corp, production is still unable to meet the demands of consumers; lead time occurs greater than the plan agreed upon by the consumers. In the assembly process, each work station experiences a lack of parts and components needed to assemble components. This happens because of the delay in getting the required part information, and there is no warning about the availability of parts needed, it makes some parts unavailable in assembly warehouse. The lack of parts and components from the previous work station causes the assembly process to stop, and the assembly line also stops at the next station. In its completion, the production time was late and not on the schedule. In resolving these problems, the controlling process is needed, which is controlling the assembly line to get all components and subassembly in the right amount and at the right time. This study applies one of Just In Time tools, namely Kanban and automation, should be added as efficiently and effectively communication line becomes electronic Kanban. The problem can be solved by reducing non-value added time, such as waiting time and idle time. The proposed results of controlling the assembly line of Tailboom result in a smooth assembly line without waiting, reduced lead time, and achieving production time according to the schedule agreed with the consumers.

Keywords: kanban, e-Kanban, lead time, pull system

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14 Digital Elevation Model Analysis of Potential Prone Flood Disaster Watershed Citarum Headwaters Bandung

Authors: Faizin Mulia Rizkika, Iqbal Jabbari Mufti, Muhammad R. Y. Nugraha, Fadil Maulidir Sube

Abstract:

Flooding is an event of ponding on the flat area around the river as a result of the overflow of river water was not able to be accommodated by the river and may cause damage to the infrastructure of a region. This study aimed to analyze the data of Digital Elevation Model (DEM) for information that plays a role in the mapping of zones prone to flooding, mapping the distribution of zones prone to flooding that occurred in the Citarum upstream using secondary data and software (ArcGIS, MapInfo), this assessment was made distribution map of flooding, there were 13 counties / districts dam flood-prone areas in Bandung, and the most vulnerable districts are areas Baleendah-Dayeuhkolot-Bojongsoang-Banjaran. The area has a low slope and the same limits with boundary rivers and areas that have excessive land use, so the water catchment area is reduced.

Keywords: mitigation, flood, citarum, DEM

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13 Flexible Mixed Model Assembly Line Design: A Strategy to Respond for Demand Uncertainty at Automotive Part Manufacturer in Indonesia

Authors: T. Yuri, M. Zagloel, Inaki M. Hakim, Tegu Bintang Nugraha

Abstract:

In an era of customer centricity, automotive parts manufacturer in Indonesia must be able to keep up with the uncertainty and fluctuation of consumer demand. Flexible Manufacturing System (FMS) is a strategy to react to predicted and unpredicted changes of demand in automotive industry. This research is about flexible mixed model assembly line design through Value Stream Mapping (VSM) and Line Balancing in mixed model assembly line prior to simulation. It uses value stream mapping to identify and reduce waste while finding the best position to add or reduce manpower. Line balancing is conducted to minimize or maximize production rate while increasing assembly line productivity and efficiency. Results of this research is a recommendation of standard work combination for specifics demand scenario which can enhance assembly line efficiency and productivity.

Keywords: automotive industry, demand uncertainty, flexible assembly system, line balancing, value stream mapping

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12 Bioaccessibility of Vitamin A Nanoemulsion: Influence of Carrier Oil and Surfactant Concentration

Authors: R. N. Astya, E. S. Nugraha, S. P. Nurheni, Hoerudin

Abstract:

Vitamin A deficiency remains to be among the major malnutrition problems in Indonesia. Vitamin A is a fat-soluble vitamin which renders it difficult to be fortified in water-based foods and beverages. Furthermore, its low solubility and stability in aqueous system may limit its bioaccessibility in the gastrointestinal tract. Nanoemulsification of vitamin A may solve these problems. The objective of this study was to investigate bioaccessibility of vitamin A (retinyl palmitate/RP) nanoemulsion as influenced by two types of carrier oil (Virgin Coconut Oil/VCO and corn oil/CO) and surfactant concentrations (polysorbate 20/Tween 20 3% and 6%). Oil in water (o/w) nanoemulsions of vitamin A was produced through a combination of high shear-high pressure homogenization technique. The results showed that RP-VCO nanoemulsions were 121.62 nm (3%) and 115.40 (6%) nm in particle size, whereas RP-CO nanoemulsions were 154.72 nm (3%) and 134.00 nm (6%) in particle size. As for VCO nanoemulsions, the bioaccessibility of vitamin A was shown to be 89.84% and 55.32%, respectively. On the other hand, CO nanoemulsions produced vitamin A bioaccessibility of 53.66% and 44.85%, respectively. In general, VCO nanoemulsions showed better bioaccessibility of vitamin A than CO nanoemulsions. In this study, RP-VCO nanoemulsion with 3% Tween 20 had the highest ζ-potential value (-26.5 mV) and produced the highest bioaccessibility of vitamin A (89.84%, P<0.05). Additionally, the vitamin A nanoemulsion was stable even for after a week of freeze and thaw treatment. Following the freeze and thaw treatment, the vitamin A nanoemulsion showed good stability without aggregation and separation. These results would be useful for designing effective vitamin A delivery systems for food and beverage applications.

Keywords: bioaccessibility, carrier oil, surfactant, vitamin A nanoemulsion

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11 A Shift in the Structure of Economy and Synergy of University: Developing Potential Through Research and Development Center of SMEs in Jember

Authors: Muhamad Nugraha

Abstract:

Economic growth always correlate positively with the magnitude of the unemployment rate. This is caused by labor which one of important variable to keep growth in the real sector of the region. Meanwhile, the economic structure in districts of Jember showed an increase of economic activity began to shift towards the industrial sector and some other economic sectors, so they have an affects to considerations for policy makers to increase economic growth in Jember as an autonomous region in East Java Province. At the fact, SMEs is among the factors driving economic growth in the region. This is shown by the high amount of SMEs. However, employment in the sector grew slightly slowed. It is caused by a lack of productivity in SMEs. Through the analysis of the transformation of economic structure theory, and the theory of Triple Helix using descriptive analytical method Location Quotient and Shift - Share, found that the results of the economic structure in Jember slowly shifting from the agricultural sector to the industrial sector, because it is dominated by trade sector, hotel and restaurant sector. In addition, SMEs is the potential sector of economic growth in Jember. While to maximizing role and functions of the institution's Research and Development Center of SMEs, there are three points to be known, that are Business Landscape, Business Architecture and Value Added.

Keywords: economic growth, SMEs, labor, Research and Development Center of SMEs

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10 The Differences of Vascular Endothelial Growth Factor Levels in Serum to Determine Follicular Adenoma and Follicular Carcinoma of Thyroid

Authors: Tery Nehemia Nugraha Joseph, J. D. P. Wisnubroto

Abstract:

Thyroid cancer is a healthcare problem with high morbidity and mortality. Follicular adenoma and follicular carcinoma are thyroid tumors from the thyroid follicular cells differentiation with a microfollicular pattern that consists of follicular cuboidal cells. vascular endothelial growth factor (VEGF) is a potent and powerful mitogen for endothelial cells and increases vascular permeability. Therefore, due to an increase in thyroid-stimulating hormone (TSH), VEGF production is activated in the thyroid that leads to the end of mitogenic TSH stimulation and initiation of angiogenesis. The differences in VEGF levels in the follicular carcinoma of thyroid tissue with follicular adenoma thyroid can be used as a basis in differentiating the two types of neoplasms. This study aims to analyze VEGF in the serum so that it can be used to differentiate the types of thyroid carcinoma before surgery. This study uses a cross-sectional research design. Samples were carried out by taking serum samples, and the VEGF levels were calculated. Data were analyzed using the Mann-Whitney test. The results found a significant difference between VEGF levels in the follicular carcinoma thyroid group and VEGF levels in the follicular adenoma thyroid group with a value of p = 0.007 (p < 0.05). The results obtained are 560,427 ± 160,506 ng/mL in the type of follicular carcinoma thyroid and 320.943 ± 134.573 ng/mL in the type of follicular adenoma thyroid. VEGF levels between follicular adenoma and follicular carcinoma are different. VEGF levels are higher in follicular carcinoma thyroid than follicular adenoma thyroid.

Keywords: follicular adenoma thyroid, follicular carcinoma thyroid, thyroid, VEGF

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9 Prevalence and Characteristics of Torus Palatinus among Western Indonesian Population

Authors: Raka Aldy Nugraha, Kiwah Andanni, Aditya Indra Pratama, Aswin Guntara

Abstract:

Background: Torus palatinus is a bony protuberance in the hard palate. Sex and race are considered as influencing factors for the development of torus palatinus. Hence, the objective of this study was to determine the prevalence and characteristics of torus palatinus and its correlation with sex and ethnicity among Western Indonesian Population. Methods: We conducted a descriptive and analytical study employing cross-sectional design in 274 new students of Universitas Indonesia. Data were collected by using consecutive sampling method through questionnaire-filling and direct oral examination. Subject with racial background other than indigenous Indonesian Mongol were excluded from this study. Data were statistically analyzed using chi square test for categorical variables whereas logistic regression model was employed to assess the correlation between variables of interest with prevalence of torus palatinus. Results: Torus palatinus were found in 212 subjects (77.4%), mostly small in size (< 3 mm) and single in number, with percentage of 50.5% and 90.6%, respectively. The prevalence of torus palatinus were significantly higher in women (OR 2.88; 95% CI: 1.53-5.39; p = 0.001), dominated by medium-sized and single tori. There was no significant correlation between ethnicity and the occurrence of torus palatinus among Western Indonesian population. Conclusion: Torus palatinus was prevalent among Western Indonesian population. It showed significant positive correlation with sex, but not with ethnicity.

Keywords: characteristic, ethnicity, Indonesia, mongoloid, prevalence, sex, Torus palatinus

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8 Automatic Tofu Stick Cutter to Increase the Production Capacity of Small and Medium Enterprises

Authors: Chaca Nugraha Zaid, Hikmat Ronaldo, Emerald Falah Brayoga, Azizah Eddy Setiawati, Soviandini Dwiki Kartika Putri, Novita Wijayanti

Abstract:

In the tofu stick production, the manual cutting process takes a half of working day or 4 hours for 21 kg of tofu. This issue has hampered the small and medium enterprises (SMEs) to increase the capacity of production to fulfill the market demand. In order to address the issue, the cutting process should be automized to create fast, efficient, and effective tools. This innovation to tackle this problem is an automatic cutter tool that is able to move continuously to cut the tofu into stick size. The tool uses the 78,5-watt electric motor and automatic sensors to drive the cutting tool automatically, resulting faster process time with more uniform size compared to the manual cutter. The component of this tool, i.e., cutting knife and the driver, electric motor, limit switch sensors, riley, Arduino nano, and power supply. The cutting speed cutting speed of this tool is 101,25 mm/s producing 64 tofu sticks. Benefits that can be obtained from the use of automatic tofu stick cutter, i.e. (1) Faster process (2) More uniform cutting result; (3) The quality of the tofu stick is maintained due to minimal contact with humans so that contamination can be suppressed; (4) The cutting knife can be modified to the desired size of the owner.

Keywords: automatic, cutter, small and medium enterprise, tofu stick

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7 Psychometric Properties of the Eq-5d-3l and Eq-5d-5l Instruments for Health Related Quality of Life Measurement in Indonesian Population

Authors: Dwi Endarti, Susi a Kristina, Rizki Noorizzati, Akbar E Nugraha, Fera Maharani, Kika a Putri, Asninda H Azizah, Sausanzahra Angganisaputri, Yunisa Yustikarini

Abstract:

Cost utility analysis is the most recommended pharmacoeconomic method since it allows widely comparison of cost-effectiveness results from different interventions. The method uses outcome of quality-adjusted life year (QALY) or disability-adjusted life year (DALY). Measurement of QALY requires the data of utility dan life years gained. Utility is measured with the instrument for quality of life measurement such as EQ-5D. Recently, the EQ-5D is available in two versions which are EQ-5D-3L and EQ-5D-5L. This study aimed to compare the EQ-5D-3L and EQ-5D-5L to examine the most suitable version for Indonesian population. This study was an observational study employing cross sectional approach. Data of quality of life measured with EQ-5D-3L and EQ-5D-5L were collected from several groups of population which were respondent with chronic diseases, respondent with acute diseases, and respondent from general population (without illness) in Yogyakarta Municipality, Indonesia. Convenience samples of hypertension patients (83), diabetes mellitus patients (80), and osteoarthritis patients (47), acute respiratory tract infection (81), cephalgia (43), dyspepsia (42), and respondent from general population (293) were recruited in this study. Responses on the 3L and 5L versions of EQ-5D were compared by examining the psychometric properties including agreement, internal consistency, ceiling effect, and convergent validity. Based on psychometric properties tests of EQ-5D-3L dan EQ-5D-5L, EQ-5D-5L tended to have better psychometric properties compared to EQ-5D-3L. Future studies for health related quality of life (HRQOL) measurements for pharmacoeconomic studies in Indonesia should apply EQ-5D-5L.

Keywords: EQ-5D, Health Related Quality of Life, Indonesian Population, Psychometric Properties

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6 Geological Engineering Mapping Approach to Know Factor of Safety Distribution and Its Implication to Landslide Potential at Muria Mountain, Kudus, Central Java Province, Indonesia

Authors: Sony Hartono, Azka Decana, Vilia Yohana, Annisa Luthfianihuda, Yuni Faizah, Tati Andriani, Dewi Kania, Fachri Zulfiqar, Sugiar Yusup, Arman Nugraha

Abstract:

Landslide is a geological hazard that is quite common in some areas in Indonesia and have disadvantages impact for public around. Due to the high frequency of landslides in Indonesia, and extensive damage, landslides should be specifically noted. Landslides caused by a soil or rock unit that has been in a state of unstable slopes and not in ideal state again, so the value of ground resistance or the rock been passed by the value of the forces acting on the slope. Based on this fact, authors held a geological engineering mapping at Muria Mountain, Kudus, Central Java province which is known as an agriculture and religion tourism area. This geological engineering mapping is performed to determine landslides potential at Muria Mountain. Slopes stability will be illustrated by a number called the “factor of safety” where the number can describe how much potential a slope to fall. Slopes stability can be different depending on the physical and mechanical characteristics of the soil and slope conditions. Testing of physical and mechanical characteristics of the soil conducted in the geotechnical laboratory. The characteristics of the soil must be same when sampled as well as in the test laboratory. To meet that requirement, authors used "undisturb sample" method that will be guarantee sample will not be distracted by environtment influences. From laboratory tests on soil physical and mechanical properties obtained characteristics of the soil on a slope, and then inserted into a Geological Information Software that would generate a value of factor of safety and give a visualization slope form area of research. Then, as a result of the study, obtained a map of the ground movement distribution map and i is implications for landslides potential areas.

Keywords: factor of safety, geological engineering mapping, landslides, slope stability, soil

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5 Basin Professor, Petroleum Geology Assessor in Indonesia Basin

Authors: Arditya Nugraha, Herry Gunawan, Agung P. Widodo

Abstract:

The various possible strategies to find hydrocarbon are explored within a wide ranging of efforts. It started to identify petroleum concept in the basin. The main objectives of this paper are to integrate and develop information, knowledge, and evaluation from Indonesia’s sedimentary basins system in terms of their suitability for exploration activity and estimate the hydrocarbon potential available. The system which compiled data information and knowledge and comprised exploration and production data of all basins in Indonesia called as Basin Professor which stands for Basin Professional and Processor. Basin Professor is a website application using Geography Information System which consists of all information about basin montage, basin summary, petroleum system, stratigraphy, development play, risk factor, exploration history, working area, regional cross section, well correlation, prospect & lead inventory and infrastructure spatial. From 82 identified sedimentary basins, North Sumatra, Central Sumatra, South Sumatera, East Java, Kutai, and Tarakan basins are respectively positioned of the Indonesia’ s mature basin and the most productive basin. The Eastern of Indonesia also have many hydrocarbon potential and discovered several fields in Papua and East Abadi. Basin Professor compiled the well data in all of the basin in Indonesia from mature basin to frontier basin. Well known geological data, subsurface mapping, prospect and lead, resources and established infrastructures are the main factors make these basins have higher suitability beside another potential basin. The hydrocarbon potential resulted from this paper based on the degree of geological data, petroleum, and economic evaluation. Basin Professor has provided by a calculator tool in lead and prospect for estimate the hydrocarbon reserves, recoverable in place and geological risk. Furthermore, the calculator also defines the preliminary economic evaluation such as investment, POT IRR and infrastructures in each basin. From this Basin Professor, petroleum companies are able to estimate that Indonesia has a huge potential of hydrocarbon oil and gas reservoirs and still interesting for hydrocarbon exploration and production activity.

Keywords: basin summary, petroleum system, resources, economic evaluation

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4 An Experimental Investigation of Chemical Enhanced Oil Recovery (Ceor) for Fractured Carbonate Reservoirs, Case Study: Kais Formation on Wakamuk Field

Authors: Jackson Andreas Theo Pola, Leksono Mucharam, Hari Oetomo, Budi Susanto, Wisnu Nugraha

Abstract:

About half of the world oil reserves are located in carbonate reservoirs, where 65% of the total carbonate reservoirs are oil wet and 12% intermediate wet [1]. Oil recovery in oil wet or mixed wet carbonate reservoirs can be increased by dissolving surfactant to injected water to change the rock wettability from oil wet to more water wet. The Wakamuk Field operated by PetroChina International (Bermuda) Ltd. and PT. Pertamina EP in Papua, produces from main reservoir of Miocene Kais Limestone. First production commenced on August, 2004 and the peak field production of 1456 BOPD occurred in August, 2010. It was found that is a complex reservoir system and until 2014 cumulative oil production was 2.07 MMBO, less than 9% of OOIP. This performance is indicative of presence of secondary porosity, other than matrix porosity which is of low average porosity 13% and permeability less than 7 mD. Implementing chemical EOR in this case is the best way to increase oil production. However, the selected chemical must be able to lower the interfacial tension (IFT), reduce oil viscosity, and alter the wettability; thus a special chemical treatment named SeMAR has been proposed. Numerous laboratory tests such as phase behavior test, core compatibility test, mixture viscosity, contact angle measurement, IFT, imbibitions test and core flooding were conducted on Wakamuk field samples. Based on the spontaneous imbibitions results for Wakamuk field core, formulation of SeMAR with compositional S12A gave oil recovery 43.94% at 1wt% concentration and maximum percentage of oil recovery 87.3% at 3wt% concentration respectively. In addition, the results for first scenario of core flooding test gave oil recovery 60.32% at 1 wt% concentration S12A and the second scenario gave 96.78% of oil recovery at concentration 3 wt% respectively. The soaking time of chemicals has a significant effect on the recovery and higher chemical concentrations affect larger areas for wettability and therefore, higher oil recovery. The chemical that gives best overall results from laboratory tests study will also be a consideration for Huff and Puff injections trial (pilot project) for increasing oil recovery from Wakamuk Field

Keywords: Wakamuk field, chemical treatment, oil recovery, viscosity

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3 Design of Agricultural Machinery Factory Facility Layout

Authors: Nilda Tri Putri, Muhammad Taufik

Abstract:

Tools and agricultural machinery (Alsintan) is a tool used in agribusiness activities. Alsintan used to change the traditional farming systems generally use manual equipment into modern agriculture with mechanization. CV Nugraha Chakti Consultant make an action plan for industrial development Alsintan West Sumatra in 2012 to develop medium industries of Alsintan become a major industry of Alsintan, one of efforts made is increase the production capacity of the industry Alsintan. Production capacity for superior products as hydrotiller and threshers set each for 2.000 units per year. CV Citra Dragon as one of the medium industry alsintan in West Sumatra has a plan to relocate the existing plant to meet growing consumer demand each year. Increased production capacity and plant relocation plan has led to a change in the layout; therefore need to design the layout of the plant facility CV Citra Dragon. First step the to design of plant layout is design the layout of the production floor. The design of the production floor layout is done by applying group technology layout. The initial step is to do a machine grouping and part family using the Average Linkage Clustering (ALC) and Rank Order Clustering (ROC). Furthermore done independent work station design and layout design using the Modified Spanning Tree (MST). Alternative selection layout is done to select the best production floor layout between ALC and ROC cell grouping. Furthermore, to design the layout of warehouses, offices and other production support facilities. Activity Relationship Chart methods used to organize the placement of factory facilities has been designed. After structuring plan facilities, calculated cost manufacturing facility plant establishment. Type of layout is used on the production floor layout technology group. The production floor is composed of four cell machinery, assembly area and painting area. The total distance of the displacement of material in a single production amounted to 1120.16 m which means need 18,7minutes of transportation time for one time production. Alsintan Factory has designed a circular flow pattern with 11 facilities. The facilities were designed consisting of 10 rooms and 1 parking space. The measure of factory building is 84 m x 52 m.

Keywords: Average Linkage Clustering (ALC), Rank Order Clustering (ROC), Modified Spanning Tree (MST), Activity Relationship Chart (ARC)

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2 Reorientation of Sustainable Livestock Management: A Case Study Applied to Wastes Management in Faculty of Animal Husbandry, Padjadjaran University, Indonesia

Authors: Raka Rahmatulloh, Mohammad Ilham Nugraha, Muhammad Ifan Fathurrahman

Abstract:

The agricultural sector covers a wide area, one of them is livestock subsector that supply needs of the food source of animal protein. Animal protein is produced by the main livestock production such as meat, milk, eggs, etc. Besides the main production, livestock would produce metabolic residue, so called livestock wastes. Characteristics of livestock wastes can be either solid (feces), liquid (urine), and gas (methane) which turned out to be useful and has economical value when well-processed and well-controlled. Nowadays, this livestock wastes is considered as a source of pollutants, especially water pollution. If the source of pollutants used in an integrated way, it will have a positive impact on organic farming and a healthy environment. Management of livestock wastes can be integrated with the farming sector to the planting and caring that rely on fertilizers. Most Indonesian farmers still use chemical fertilizers, where the use of it in the long term will disturb the ecological balance of the environment. One of the main efforts is to use organic fertilizers instead of chemical fertilizer that conducted by the Faculty of Animal Husbandry, Padjadjaran University. The method is to use the solid waste of livestock and agricultural wastes into liquid organic fertilizer, feed additive, biogas and vermicompost through decomposition. The decomposition takes as long as 14 days including aeration and extraction process using water as a nutrients solvent media which contained in decomposes and disinfection media to release pathogenic microorganisms in decomposes. Liquid organic fertilizer has highly efficient for the farmers to have a ratio of carbon/nitrogen (C/N) 25/1 to 30/1 and neutral pH (6.5-7.5) which is good for plant growth. Feed additive may be given to improve the digestibility of feed so that substances can be easily absorbed by the body for production. Biogas contains methane (CH4), which has a high enough heat to produce electricity. Vermicompost is an overhaul of waste organic material that has excellent structure, porosity, aeration, drainage, and moisture holding capacity. Based on the case study above, an integrated livestock wastes management program strongly supports the Indonesian government in the achievement of sustainable livestock development.

Keywords: integrated, livestock wastes, organic fertilizer, sustainable livestock development

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1 Determination Optimum Strike Price of FX Option Call Spread with USD/IDR Volatility and Garman–Kohlhagen Model Analysis

Authors: Bangkit Adhi Nugraha, Bambang Suripto

Abstract:

On September 2016 Bank Indonesia (BI) release regulation no.18/18/PBI/2016 that permit bank clients for using the FX option call spread USD/IDR. Basically, this product is a combination between clients buy FX call option (pay premium) and sell FX call option (receive premium) to protect against currency depreciation while also capping the potential upside with cheap premium cost. BI classifies this product as a structured product. The structured product is combination at least two financial instruments, either derivative or non-derivative instruments. The call spread is the first structured product against IDR permitted by BI since 2009 as response the demand increase from Indonesia firms on FX hedging through derivative for protecting market risk their foreign currency asset or liability. The composition of hedging products on Indonesian FX market increase from 35% on 2015 to 40% on 2016, the majority on swap product (FX forward, FX swap, cross currency swap). Swap is formulated by interest rate difference of the two currency pairs. The cost of swap product is 7% for USD/IDR with one year USD/IDR volatility 13%. That cost level makes swap products seem expensive for hedging buyers. Because call spread cost (around 1.5-3%) cheaper than swap, the most Indonesian firms are using NDF FX call spread USD/IDR on offshore with outstanding amount around 10 billion USD. The cheaper cost of call spread is the main advantage for hedging buyers. The problem arises because BI regulation requires the call spread buyer doing the dynamic hedging. That means, if call spread buyer choose strike price 1 and strike price 2 and volatility USD/IDR exchange rate surpass strike price 2, then the call spread buyer must buy another call spread with strike price 1’ (strike price 1’ = strike price 2) and strike price 2’ (strike price 2’ > strike price 1‘). It could make the premium cost of call spread doubled or even more and dismiss the purpose of hedging buyer to find the cheapest hedging cost. It is very crucial for the buyer to choose best optimum strike price before entering into the transaction. To help hedging buyer find the optimum strike price and avoid expensive multiple premium cost, we observe ten years 2005-2015 historical data of USD/IDR volatility to be compared with the price movement of the call spread USD/IDR using Garman–Kohlhagen Model (as a common formula on FX option pricing). We use statistical tools to analysis data correlation, understand nature of call spread price movement over ten years, and determine factors affecting price movement. We select some range of strike price and tenor and calculate the probability of dynamic hedging to occur and how much it’s cost. We found USD/IDR currency pairs is too uncertain and make dynamic hedging riskier and more expensive. We validated this result using one year data and shown small RMS. The study result could be used to understand nature of FX call spread and determine optimum strike price for hedging plan.

Keywords: FX call spread USD/IDR, USD/IDR volatility statistical analysis, Garman–Kohlhagen Model on FX Option USD/IDR, Bank Indonesia Regulation no.18/18/PBI/2016

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