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Waskita signs major loan restructuring deal
State-owned construction company PT Waskita Karya has reached a Rp 19.3 trillion loan restructuring agreement with five creditors to alleviate its debt after booking a deep net loss in 2020 due to COVID-19.
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A construction worker inspects a girder in PT Waskita Beton Precast's plant in Palembang, South Sumatra, on Aug 8, 2016. PT Waskita Beton Precast is a subsidiary of state-owned construction firm PT Waskita Karya, which has just signed a Rp 19.3 trillion loan restructuring agreement with five state-owned banks. (JP/Donny Fernando)
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T Waskita Karya has reached a Rp 19.3 trillion (US$1.33 billion) loan restructuring agreement with five state-owned banks to alleviate the debt of Indonesia’s largest state-owned construction company.
State-Owned Enterprises (SOE) Minister Erick Thohir said the agreement covered 65 percent of Waskita’s total loan debt of Rp 29.26 trillion. The five creditors are PT Bank Negara Indonesia (BNI), PT Bank Mandiri, PT Bank Rakyat Indonesia (BRI), PT Bank Syariah Indonesia (BSI) and PT Bank Pembangunan Daerah Jawa Barat (BJB).
“There is still 35 percent left [of Waskita Karya's debt] that needs to be solved,” Erick said in a statement on Friday.
Waskita’s debt has been piling up over the past few years, as the government had assigned it to take on dozens of infrastructure projects, including water dams, airports, seaports and – the biggest contributor to its debt – toll roads.
Read also: INA to buy into toll roads of debt-laden SOEs
The company has over Rp 94 trillion in debt, including Rp 50 trillion in loans and Rp20 trillion in bond debt, according to SOE Ministry data. At the same time, the company’s ability to service the loans is being pinched by shrinking profit margins.
Waskita booked a deep net loss of over Rp 7 trillion in 2020, turning around a net profit booked the previous year, amid rising financing costs and project delays.
