Indonesia’s state-owned energy company PT Pertamina is seeking a short-term loan worth US$2.5 billion (Rp40.9 trillion), a transaction expected to be one of the country’s largest U.S. dollar loan deals this year.
According to Bloomberg sources familiar with the matter, Pertamina has appointed Mitsubishi UFJ Financial Group (MUFG) to arrange a one-year loan facility, intended to cover working capital needs. The facility is expected to be syndicated to a broader group of lenders at a later stage. As of now, Pertamina’s spokesperson has not commented on the plan.
The move adds to a string of dollar-denominated borrowing by Indonesian companies over the past year, reflecting market sentiment in a country recently shaken by widespread social unrest. Protests in recent days triggered sell-offs in both stocks and bonds, although signs of recovery have begun to emerge.
Credit rating agency Fitch Ratings has warned that prolonged unrest could weaken Indonesia’s credit standing, hamper economic growth, and strain public finances.
At the same time, Pertamina’s shipping arm is pursuing a separate US$700 million loan to fund vessel construction. Meanwhile, Indonesia’s sovereign wealth fund Danantara has mandated banks to coordinate a multi-currency loan of up to US$10 billion, which could become Southeast Asia’s largest syndicated loan facility.
However, Pertamina continues to face significant challenges. Authorities are investigating an alleged US$17 billion corruption case linked to oil procurement between 2018 and 2023. In July, eight suspects were arrested and charged in connection with the scandal, Bloomberg News reported.
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