Indonesia’s new president faces $186 billion debt dilemma

Quick Summary:

Days after taking charge of Southeast Asia’s biggest economy, Indonesia’s president needs a plan to deal with rising borrowing costs for key state-owned enterprises carrying $186 billion of debt.

The plan, which is part of the ministry’s restructuring work since 2023, includes options such as providing additional capital to some of these companies, merging the troubled ones into a healthier parent and forcing them to specialize their work instead of competing with each other and causing a price war, according to a person familiar with the plan.

When responding to Bloomberg News’ requests for comment, state builder PP’s finance director Agus Purbianto said the firm’s wider spreads on its latest bond offering were due to low demand from investors, partly due to a lack of confidence in the construction sector.

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Article Details

Author / Journalist: Harry Suhartono & Faris Mokhtar | Bloomberg

Category: BusinessStartups

Markets: PhilippinesIndonesia

Topics: Debt Karya Other Spreads President Plan Government State-owned Companies Firms State

Source Website Secure: Yes (HTTPS)

News Sentiment: Negative

Fact Checked: Legitimate

Article Type: News Report

Published On: 2024-10-31 @ 10:42:15 (13 hours ago)

News Timezone: GMT +8:00

News Source URL: businessmirror.com.ph

Language: English

Article Length: 949 words

Reading Time: 6 minutes read

Sentences: 28 lines

Sentence Length: 34 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © Business Mirror

News ID: 23347775

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