APSN Banner

Indonesian parliament approves $1.8 capital top-up for state firms in 2024

Reuters - October 2, 2023

Jakarta – The financial committee of Indonesia's parliament on Monday approved 28.2 trillion rupiah ($1.82 billion) of capital injection for several state companies by 2024, including for debt-strapped construction firms.

The committee also approved a 36.8 trillion rupiah ($2.37 billion) capital injection for several state firms for this year, the committee said in a livestreamed meeting.

Construction firm Hutama Karya will receive the biggest chunk amounting to 28.9 trillion rupiah this year and 18.6 trillion next year.

Authorities have said Hutama Karya will be tasked with taking over some of troubled construction firm Waskita Karya's assets.

Another debt-laden construction company, Wijaya Karya, will get 6 trillion rupiah next year.

However, the approved 2024 capital injection was below the government's original proposal of 22.5 trillion rupiah ($1.45 billion) for Hutama Karya and 8 trillion rupiah for Wijaya Karya.

Waskita and Wijaya Karya, among Indonesia's biggest construction firms, have been renegotiating their debt with lenders. The companies are overleveraged having been assigned by the government to build massive infrastructure projects.

Trading in Waskita's shares has been suspended since May after it failed to secure bondholder approval to defer a coupon payment.

Waskita and Wijaya Karya did not immediately respond to a request for comment.

Source: https://www.channelnewsasia.com/business/indonesian-parliament-approves-18-billion-capital-top-state-firms-2024-381387