Pefindo Cuts ADHI Rating to idBB, Signalling Liquidity Pressure
Jakarta - PT Pemeringkat Efek Indonesia (Pefindo) has downgraded the rating of PT Adhi Karya (Persero) Tbk (ADHI) to idBB from idA- with a CreditWatch with Negative implications. The rating action also applies to the company’s Shelf Registration Bonds (PUB) III and PUB IV.
In a publication released on 31 July 2026, Pefindo stated the downgrade reflects the company’s plan to hold a bondholders’ meeting to request a postponement of coupon payments. The nearest coupon payment is due on 24 August 2026.
“This plan indicates that the company is experiencing acute liquidity pressure, which has materially weakened its ability to meet financial obligations on time,” Pefindo wrote.
The liquidity pressure is primarily attributed to persistently weak operational cash flows, limited financial flexibility including access to funding, and challenging long-term conditions in Indonesia’s construction sector.
Pefindo noted that ADHI’s rating is still supported by its adequate market position, but is constrained by high liquidity risk, high leverage, execution risk related to its order book, and a volatile business environment. The rating agency also opened the option for further review based on the outcome of the bondholders’ meeting decision.
However, if bondholders approve the coupon postponement, Pefindo considers it could potentially trigger a deeper rating downgrade, as it is viewed as a form of distressed debt restructuring to avoid default.
In terms of financial performance, Pefindo reported that ADHI’s adjusted assets as of June 2026 stood at Rp26.21 trillion, down from Rp28.79 trillion at the end of 2025. The company’s adjusted total equity shrank sharply to Rp2 trillion, from Rp3.3 trillion at the end of 2025, and significantly lower than Rp9.68 trillion in 2024.
ADHI’s total sales in the first half of 2026 were recorded at Rp3.3 trillion, while the company’s EBITDA was Rp535.8 billion with an EBITDA margin of 16.2%.
The company’s adjusted debt-to-EBITDA ratio surged to 7.7 times on an annualised basis as of June 2026. The adjusted debt-to-equity ratio also increased to 4.1 times, from 2.5 times at the end of 2025.
ADHI is a state-owned contractor established in 1960, with four main business segments: construction; engineering, procurement, and construction (EPC); property and realty; and infrastructure investment. As of 30 June 2026, PT Danantara Aset Management (Persero) was listed as the majority shareholder with a 64.3% stake, while the remainder is held by the public.