PT Kawasan Industri Jababeka Tbk

Overview Key strengths Key risks Established industrial estate developer east of Jakarta with a low-cost land bank. Imminent refinancing pressure due to significant debt maturing in 2023. Recurring income from infrastructure services that cover a significant portion of interest costs. High reliance on lumpy and cyclical industrial land sales. Project concentration in two key townships. Negative discretionary free cash flow over the next two years. We believe the company is proactively managing its bond maturity of US$300 million in October 2023, but unfavorable financial market conditions have increased execution risk. This is on the back of rising interest rates, potential Indonesian rupiah depreciation, and rising defaults in the high-yield segment. These factors will likely persist in the next six to

... execution risks on PT Kawasan Industri Jababeka Tbk.'s (Jababeka) refinancing plan. We believe the company is proactively managing its bond maturity of US$300 million in October 2023, but unfavorable financial market conditions have increased execution risk. This is on the back of rising interest rates, potential Indonesian rupiah depreciation, and rising defaults in the high-yield segment. These factors will likely persist in the next six to 12 months, in our view. While Jababeka...

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