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Private lenders to PT Visi Media Asia secured a rare win in Indonesian court after a Jakarta judge ruled to fully admit their $560 million claim, allowing them to participate in the debt restructuring of the embattled media company, Bloomberg News reported. The ruling by Judge Kadarisman Al Riskandar of the Central Jakarta Commercial Court on Monday overruled an earlier decision by court administrators who had rejected the claim, according to a statement from a group of creditors. Lenders to the company include funds managed by Tor Investment Management and Varde Partners Inc.
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Indonesia’s central bank stood pat at its June policy meeting as expected, aiming to keep inflation in check as well as to maintain the rupiah’s stability, the Wall Street Journal reported. Bank Indonesia on Thursday kept its benchmark seven-day reverse repo rate at 6.25%. The central bank also held its overnight deposit facility rate at 5.50% and its lending facility rate at 7.0%. The decision is consistent with the bank’s pre-emptive, forward-looking stance to ensure inflation remains under control and to strengthen the rupiah, Bank Indonesia Gov.
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Foreigners pulled money out of their emerging market portfolios in April on concerns of a tighter monetary policy path in the U.S., with outflows from stocks in India and Indonesia leading the way, data from a banking trade group showed, Reuters reported. The Institute of International Finance data showed net non-resident portfolio flows for April came in at -$0.7 billion, the first monthly outflow since October. The figure compares with net inflows of $30.2 billion in March and a $16.3 billion inflow in April 2023, the IIF data show.
Indonesia’s central bank stood pat at its May policy meeting, a widely expected decision as policymakers keep an eye on rupiah stability and inflation against an uncertain backdrop, the Wall Street Journal reported. Bank Indonesia kept its benchmark seven-day reverse repo rate at 6.25%. All seven economists polled by The Wall Street Journal had expected the decision. The central bank also held its overnight deposit facility rate at 5.50% and its lending facility rate at 7.0%.
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Indonesia’s central bank delivered its first rate hike of the year, defying broad projections for a hold as it looks to support a tumbling rupiah, the Wall Street Journal reported. Bank Indonesia on Wednesday raised its benchmark seven-day reverse repo rate by 25 basis points to 6.25%, tightening policy settings for the first time since October last year. The decision is a “pre-emptive and forward-looking step to strengthen rupiah’s stability and cushion the impact of worsening global risks,” Bank Indonesia Gov. Perry Warjiyo said at a press conference.
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A surprise rate increase by Indonesia’s central bank underlines expectations that the start of monetary policy easing is looking increasingly far off for many Asian central banks, if it is on the horizon at all, the Wall Street Journal reported. As the U.S. Federal Reserve holds off on its own rate cuts and Asian currencies come under pressure, central banks in Asia face a dilemma. Lowering before the Fed does risks adding pressure to already-weak Asian currencies, pushing up prices of imported goods and services and sending inflation rates higher.
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Indonesia said fiscal and monetary policies are in sync to cushion the economy from the rising dollar, demonstrating an all-hands-on-deck approach, with the central bank signaling they’re intervening more actively to aid the rupiah, Bloomberg News reported. “We work very closely with Governor Perry in order for us to be able to adjust the macro stance to adapt with this new level of pressure,” Finance Minister Sri Mulyani Indrawati said in a Bloomberg Television interview on Thursday, referring to Bank Indonesia’s top policymaker.
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The Singapore International Commercial Court (SICC) has handed down its first insolvency-related ruling, JDSupra reported. The court granted recognition and full force and effect to Indonesia's flagship airline's restructuring plan. That plan had been approved in accordance with Indonesian law. In granting recognition to the Indonesian plan under Singapore's version of the UNCITRAL Model Law on Cross-Border Insolvency, the SICC overruled objections to recognition from aircraft lessors.
State builder PT Wijaya Karya clinched an agreement with some of Indonesia’s biggest banks to restructure 20.58 trillion rupiah ($1.31 billion) of debt, after the government’s infrastructure push saddled it with an unmanageable pile of liabilities, Bloomberg News reported. The state-owned construction company said it signed the deal with 11 institutions, including PT Bank Mandiri, PT Bank Negara Indonesia, PT Bank Rakyat Indonesia, PT Bank Tabungan Negara, PT Bank Syariah Indonesia and PT Bank Panin.
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