Indonesian Companies’ Weak Profits, High Debts Heighten Distress
- 14% of Indonesian companies in distress: Alvarez & Marsal
- Higher rates will strain companies seeking financing
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Nearly one out of every seven sizable, publicly traded Indonesian companies is financially distressed amid weakened profitability and insufficient liquidity, according to a report.
Financial risk levels remain “high” as post-pandemic weakness lingers, and higher interest rates will worsen their outlook, said the report from corporate restructuring adviser Alvarez & Marsal Inc., released Thursday.