ANNOUNCEMENT 15 Jul 2020

In July 2020, Indonesia announced to provide a capital injection of IDR 3 T (USD 205 million) to PT Krakatau Steel to help its operation in facing the impact of COVID-19 pandemic.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

The Official Press Release Commission VI, published on 22 July 2020, retrieved on 23 October 2020, in Bahasa Indonesia: http://www.dpr.go.id/berita/detail/id/29519/t/Gunakan+Skema+MCB%2C+PT.+Krakatau+Steel+Dapat+Dana+Talangan+Rp+3+Triliun

Inception date: 15 Jul 2020 | Removal date: open ended

Capital injection and equity stakes (including bailouts)

On 15 July 2020, Indonesia announced the capital injection of IDR 3 trillion (USD 205 million) to PT Krakatau Steel in the form of a mandatory convertible bond (MCB). The MCB will require conversion of the said bond into stocks in accordance with the contractual conversion date. The MCB for the PT Krakatau Steel is expected to have a tenor of seven years, with state-owned infrastructure financing company PT Sarana Multi Infrastruktur projected to act as a buyer for the bond and eventually a shareholder of the company. The capital injection received will be used to fund the operation of PT Krakatau Steel who was impacted by the COVID-19 pandemic. PT Krakatau Steel is a state-owned enterprise which is engaged in steel production.

The announcement of capital injection was made on 15 July 2020. 

* IDR to USD conversion as on 15 July 2020 - IDR 14583.07/USD

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