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Singapore Set to Suffer Indonesia's Defaults as Well as Its Smog

Investors prepare for first bond restructuring in six years
Trikomsel workout set to increase funding costs, S&P Says

An Indonesian helicopter water-bombs a fire spot in South Sumatra province. — An Indonesian helicopter water-bombs a fire spot in South Sumatra province.
Photographer: Abdul Qodir/AFP/Getty Images

By

Christopher Langner and

October 19, 2015, 4:01 PM UTCUpdated onOctober 20, 2015, 4:26 AM UTC

Singapore’s bond market is bracing for the latest unfortunate export from Indonesia: debt defaults.

The city state, shrouded in smog from fires in its neighbor, is also starting to feel the impact of that nation’s currency woes. Indonesian phone retailer PT Trikomsel Oke’s Singapore-dollar bonds plunged to record lows last week after it blamed a weak rupiah when flagging a possible bond restructuring that would be the local market’s first in six years.