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Waskita inks deal to restructure $2 billion in loans
State-owned construction company has secured a restructuring deal with 21 banks for a total of Rp 29.2 trillion in loans.
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Waskita Beton Precast is a subsidiary of the state-owned construction firm PT Waskita Karya. (kompas.com/Ridwan Aji P.)
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tate-owned PT Waskita Karya has now reached a deal with 21 banks to restructure Rp 29.2 trillion (US$2.05 billion) in loans as Indonesia’s largest construction company seeks to revive its performance following a downturn during the pandemic.
Waskita signed on Sep. 15 a restructuring agreement with 14 banks, including state-owned, local and foreign banks such as Bank Mandiri, China Construction Bank Indonesia and Panin Bank. The agreement completed the restructuring process that began on Aug. 25 with seven banks, which accounted for nearly two-thirds of the loans.
Read also: Waskita signs major loan restructuring deal
Waskita president director Destiawan Soewardjono said the restructuring was especially necessary because July’s COVID-19 resurgence had either delayed or halted construction projects, prompting creditors to stop disbursing funds and investors to cancel visits.
“This is a very important moment for Waskita to revive its business process and return the company to the performance it once achieved,” Destiawan said in an online press conference on Monday.
Waskita has over Rp 90 trillion debt in total, in part because the company has invested in 19 sections of the government’s flagship trans-Java and trans-Sumatra toll road projects, according to the president director.
The pandemic has put pressure on Waskita, causing the company to book a net loss last year. But the construction company booked Rp 41.02 billion in net profits in the first six months of this year, reversing the net loss in the same period last year.
