Indonesia’s Bakrie Telecom narrows H1 net loss, but debt worries remain

21 Oct 2013

Bakrie Telecom, a unit of the Indonesian media holding Bakrie & Brothers holding company, reported a net loss of IDR292.7 billion (USD25.9 million) in the first six months of 2013, an improvement on the net loss of IDR749.7 billion reported in the corresponding year-earlier period, as a 28% cut in expenses and an effective operating costs reduction programme fed into its bottom line. However the telco, one of a dozen Indonesian telecoms operators fighting for space in a crowded domestic fixed and mobile market, is showing worrying signs of not being able to meet its financial commitments. Although the firm has twelve million wireless subscribers – predominantly pre-paid users – in April this year Fitch Ratings reported that Bakrie is likely to default on its debt and urgently needs to restructure its USD380 million of senior unsecured bonds, due in May 2015.

Indonesia, Bakrie Telecom (BTel)