Home / World News / World's next debt disaster seen brewing in Indonesia's builder binge

World's next debt disaster seen brewing in Indonesia's builder binge

The struggles are already reminding some analysts and investors of the high-profile debt debacles in China and South Korea last year, which were centered on the nations' developers

Premium

Photo: Bloomberg

Harry Suhartono, Claire Jiao and Fathiya Dahrul | Bloomberg

6 min read Last Updated : Feb 11 2023 | 8:20 AM IST

The Trans-Java toll road, a 1,167-kilometer (725 mile) expressway snaking across Indonesia’s main island, is meant to be part of President Joko Widodo’s legacy-defining infrastructure push that helps bring the country’s economy into the 21st century.

Yet for those who follow the nation’s debt markets, the project — and other big ticket investments like it — are also a testament to the dramatic spending spree over the past decade by Indonesia’s largest builders and developers, many of which are now highly levered and face looming maturities.

The country’s top four construction firms — including the toll road’s main builder, state-owned

Topics : Indonesia Debt Builders Investments infrastructure

What you get on BS Premium?

Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
Pick your 5 favourite companies, get a daily email with all news updates on them.
Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
Preferential invites to Business Standard events.
Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.

VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in