Waskita Karya Restructures Rp31.1 Billion Financing as Debt Recovery Continues

PT Waskita Karya (Persero) Tbk has secured a restructuring agreement for Rp31.14 billion of working-capital financing at its property subsidiary PT Waskita Karya Realty, extending the facility’s maturity to the end of 2027. The agreement was signed with PT TEZ Capital and Finance on Oct. 6.

The restructuring was disclosed by Waskita on Oct. 7 as part of the company’s continuing efforts to manage debt obligations across the group. The revised financing agreement extends the tenor to Dec. 31, 2027, providing Waskita Realty with additional time to manage its obligations.

The latest agreement comes during a broader restructuring process at Waskita Karya. The construction company has been working through debt maturities, bond obligations and financing arrangements as it attempts to stabilize its balance sheet and restore access to normal capital-market conditions.

Waskita recently repaid its Series A bonds from the 2021 issuance, which had a principal value of Rp722 billion and matured on Sept. 24. Pefindo subsequently revised the company’s rating after the repayment and other restructuring developments.

The rating agency’s assessment has changed rapidly during the restructuring period. Pefindo raised Waskita’s corporate rating to idB in September, subsequently lowered it to idCCC, then raised it again to idB with a negative outlook after the company repaid the maturing bonds.

On Oct. 5, Pefindo affirmed the idB rating for Waskita and several of its shelf-registration bonds. The rating remains closely linked to the company’s financial restructuring and ability to meet its obligations.

Waskita’s regulatory filings show that restructuring activity has extended beyond the latest TEZ Capital agreement. The company has also disclosed changes to trustee agreements, affiliated loan novations and restructuring arrangements involving Waskita Fim Perkasa Realty during 2026.

The company’s efforts are being closely followed because Waskita remains one of Indonesia’s largest state-controlled construction companies, with a large portfolio of infrastructure projects accumulated during the country’s major infrastructure-development cycle.

The latest financing extension at Waskita Realty does not resolve the group’s broader debt position, but it provides additional maturity flexibility at the subsidiary level. For creditors and investors, the more important issue remains the pace at which Waskita can execute its overall restructuring plan while maintaining operations.

Waskita’s next phase will therefore depend on continued debt restructuring, asset management and liquidity preservation. The Oct. 6 agreement with TEZ Capital illustrates the incremental nature of that process as the company works through individual financing facilities while attempting to rebuild its financial position.