Bulletin: Pakuwon To Ramp Up Spending To Capitalize On Indonesia's Consumer Rebound

SINGAPORE (S&P Global Ratings) April 8, 2022--PT Pakuwon Jati Tbk.'s sizable cash balance and improving operating cash flow will support the entity's higher capital spending in 2022. Indonesia is making a fast recovery from a difficult 2021, when high COVID case numbers disrupted businesses and dampened demand. Pakuwon is responding with stepped-up expenditure. We anticipate the firm can accommodate this increased spending at the current rating (BB/Stable/--), as operating conditions improve. The Indonesian developer's capital spending will reach Indonesian rupiah (IDR) 2.4 trillion to IDR2.6 trillion this year, we assume. Pakuwon's capital spending for 2022 includes construction of Superblock Pakuwon Mall Bekasi and an extension to its Pakuwon City Mall. This also includes ongoing renovation of existing malls and potential

...April 8, 2022 SINGAPORE (S&P Global Ratings) April 8, 2022--PT Pakuwon Jati Tbk.'s sizable cash balance and improving operating cash flow will support the entity's higher capital spending in 2022. Indonesia is making a fast recovery from a difficult 2021, when high COVID case numbers disrupted businesses and dampened demand. Pakuwon is responding with stepped-up expenditure. We anticipate the firm can accommodate this increased spending at the current rating (##/Stable/--), as operating conditions improve. The Indonesian developer's capital spending will reach Indonesian rupiah (IDR) 2.4 trillion to IDR2.6 trillion this year, we assume. Pakuwon's capital spending for 2022 includes construction of Superblock Pakuwon Mall Bekasi and an extension to its Pakuwon City Mall. This also includes ongoing renovation of existing malls and potential acquisition of land and operating assets. This is a significant increase of its spending of about IDR295 billion in 2021, when recovery was uncertain as...

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