Companies
Repeated cases of missed bond payments could raise concerns about the government's contingent liabilities related to troubled state-owned enterprises (SOEs).
Students visit the office of postal company PT Pos Indonesia during a study tour in Medan, North Sumatra, on Aug. 13, 2018. (Antara/Septianda Perdana)
PT Pos Indonesia's credit rating downgrade following a bond repayment default has raised questions about how state asset fund Danantara will handle struggling state-owned enterprises (SOEs). Experts warn that similar defaults could undermine confidence in government backing and drive up borrowing costs for other state-run firms.The postal company, which has expanded into courier delivery, logistics, financial services and social assistance disbursement, is facing liquidity pressures after missing a Rp 24.1 billion (US$1.4 million) payment on the sixth installment of returns on its ijarah sukuk due on July 8.
Fitch Ratings on Tuesday downgraded Pos Indonesia’s national long-term rating from “A” to “C” after the company missed the scheduled payment.
