Rupiah Weakness Hits These Six Indonesian Companies with High Dollar Debt

The rupiah’s continued depreciation against the US dollar is placing a heavy burden on Indonesian companies with significant foreign currency debt. The local currency weakened to Rp18,000 per US dollar on Monday, pressured by domestic sentiment following the resignation of Bank Indonesia Governor Perry Warjiyo and ongoing global economic uncertainties. This depreciation has inflated the rupiah value of dollar-denominated liabilities for several publicly listed companies, potentially straining their financial positions.

PT Indofood CBP Sukses Makmur Tbk (ICBP) reported total foreign currency liabilities of approximately Rp48.60 trillion at the end of 2025, based on an exchange rate of Rp17,110 per US dollar. With the rupiah at Rp18,000, this figure swells to around Rp51.09 trillion. The largest component is its Global Bonds worth US$2.75 billion. The company noted it had no formal hedging policy in place for this exposure.

Its parent company, PT Indofood Sukses Makmur Tbk (INDF), faces a similar predicament. Its total foreign currency liabilities, including US$2.84 billion in Global Bonds and bank loans, increased from approximately Rp56.66 trillion to Rp59.66 trillion due to the exchange rate shift. Like its subsidiary, INDF reported no formal hedging policy for its foreign exchange risk.

Property developer PT Modernland Realty Tbk (MDLN) also has substantial exposure, with total US dollar liabilities rising from around Rp5.28 trillion to Rp5.56 trillion. The bulk of this is a US$274.51 million bond maturing in April 2027. The company stated it uses derivative instruments, such as forward currency contracts, to mitigate this risk.

In the telecommunications sector, PT XLSmart Telecom Sejahtera Tbk (EXCL) reported foreign currency liabilities increasing from Rp1.15 trillion to Rp1.21 trillion, primarily from trade payables to vendors for capital expenditure. The company manages this risk through regular monitoring and evaluation by its treasury function.

PT Harum Energy Tbk (HRUM), a coal mining company, also has significant US dollar-denominated liabilities. Its total foreign currency obligations, including bank loans and bonds, rose from approximately Rp2.00 trillion to Rp2.10 trillion. The company employs a natural hedging strategy by holding cash and cash equivalents in US dollars to offset the risk.