Year Ahead Event
Easy Cash Ends as Indonesian State Firms Asked to Tap Market
- Government to stop budget support to state companies in 2018
- Infrastructure, telecom firms may offer Komodo bonds for funds
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Indonesia is shutting off the public funding tap for state-owned companies, pushing them to turn to the markets for capital.
From toll-road operator PT Jasa Marga to electricity producer PT Perusahaan Listrik Negara, these 118 companies -- with combined sales of $133 billion -- must embrace new sources of fundraising starting next year, State-Owned Enterprises Minister Rini Soemarno said. Jasa Marga last week sold the country’s first rupiah-denominated global notes, called Komodo bonds, after joining Listrik Negara in offering securities backed by roads and power plants in August.