Indonesia approves 1.8-billion-USD capital injection for state firms

A city in Indonesia (Photo: https://www.marketscreener.com/)

Jakarta (VNA) - The financial committee of the Indonesian House of Representatives on October 2 approved 28.2 trillion Rp (1.82 billion USD) of capital injection for several state companies in 2024, including debt-strapped construction firms.

At a live televised meeting, the committee also adopted a 36.8 trillion Rp (2.37 billion USD) capital injection for several state firms this year.

Among beneficiaries, construction firm Hutama Karya will receive the biggest chunk, amounting to 28.9 trillion Rp in 2023 and 18.6 trillion Rp next year.

Indonesian authorities said that Hutama Karya will be tasked with taking over some of assets of troubled construction firm Waskita Karya.

Another debt-laden construction company, Wijaya Karya, will get 6 trillion Rp next year.

Waskita Karya and Wijaya Karya, among Indonesia's biggest construction firms, are overleveraged after having been assigned by the government to build massive infrastructure projects. They have been renegotiating their debt with lenders./.

VNA