Two investors interested to revive Merpati Airline
Two strategic investors have expressed interest to invest in state own flight carrier PT Merpati Nusantara Airlines that had discontinued operations since February 1, 2014. Aloysius Kiik Ro, the deputy for business restructuring of the state enterprises ministry, noted the two companies may possibly cooperate with financial service companies, such as capital private equity companies. The privatization program will be implemented through three schemes comprising selling shares through an initial public offering (IPO), rights issue, and an exit strategy or selling the shares directly. Aloysius declined to reveal the names of the two foreign companies due to confidential reasons as negotiations are still ongoing. A total of Rp350 billion has been made available to pay the debt to employees by PT Perusahaan Pengelola Aset (PPA) as the party handling the restructuring of Merpati.
Indonesia foreign debts edge lower in Q3 to $302.4 billion
Indonesia‘s foreign debts fell to $302.4 billion at the end of the third quarter this year from previously $304.5 billion a quarter earlier, according to Bank Indonesia (BI) reported. The private sectors foreign debts dropped $1.7 billion mainly due to a decline in foreign debts of banks, while the public sectors foreign debts declined $0.4 billion particularly caused by a drop in the government’s foreign debts. With the decline, the private sectors foreign debts reached $168.2 billion or 55.6 percent of the overall foreign debts, and the public sectors foreign debts stood at $134.2 billion or 44.4 percent of the overall foreign debts. The growth of Indonesias foreign debts in the third quarter of 2015 also slowed down by 2.7 percent year-on-year (yoy), as compared to 6.2 percent yoy in the previous quarter. The countrys foreign debts in the July to September 2015 were dominated by long-term debts, which accounted for 85.5 percent of the overall foreign debts. The long-term debts mostly came from the public sectors foreign debts, reaching 50.8 percent of the overall foreign debts. The short-term debts were dominated by the private sectors foreign debts representing 93.7 percent of the overall short-term foreign debts. Long-term foreign debts in the third quarter of 2015 grew 4.6 percent yoy, or less than 8.3 percent yoy, as recorded in the previous quarter. However, the growth of short-term foreign debts further contracted to minus 7.2 percent yoy from minus 4.4 percent previously.