Indonesia’s state-owned construction firm, PT Waskita Karya (Waskita), has secured a vital lifeline from its creditors. After a successful negotiation process, Waskita signed a debt restructuring agreement with 21 banks, both domestic and foreign, for a staggering $2.05 billion (Rp 29.2 trillion).
This significant debt relief package comes as a welcome reprieve for Waskita, which has been grappling with a financial burden exceeding $90 billion (Rp 90 trillion) in total. The recent resurgence of COVID-19 in July 2021 had further exacerbated the company’s woes, disrupting construction projects and stalling cash flow.
The restructuring deal offers Waskita a much-needed opportunity to regain financial stability. The agreement includes extended loan repayment terms, reduced interest rates, and potentially even debt forgiveness on certain portions. This will provide Waskita with the breathing room it needs to focus on completing ongoing projects, securing new contracts, and ultimately, returning to profitability.
The successful debt restructuring is a testament to Waskita’s commitment to financial recovery and the willingness of its creditors to collaborate on a solution. This move not only secures the future of Waskita but also injects confidence into the broader Indonesian construction industry.
