PLIN Refinances USD Debt into Rupiah to Cut Foreign Exchange Risk

JAKARTA – Jakartaweekly.com. PT Plaza Indonesia Realty Tbk (PLIN) and its parent company, PT Plaza Indonesia Investama (PII) refinances USD Debt into Rupiah syndicate loan. Previously, in 2023, PLIN and PII obtained a syndicated loan facility amount USD 265 million, with an accordion facility of US$ 35 million, bringing the total available commitment to US$ 300 million. 

They refinanced this debt with a new syndicated loan agreement signed in May 2026, valued at Rp4.7 trillion. The facility was provided by CIMB Niaga, Bank Danamon Indonesia, and BCA, with CIMB Niaga acting as both facility agent and security agent. 

The Rp4.7 trillion syndicated loan consists of three rupiah-denominated facilities: Facility A worth Rp3.7 trillion, Facility B worth Rp500 billion, and Facility C worth Rp500 billion. The facilities can be utilized interchangeably, allowing the borrowers greater flexibility in managing their financing requirements.

Under the 2026 Syndicated Loan Agreement, both PLIN and its parent company, PT Plaza Indonesia Investama (PII), act as co-borrowers and are jointly responsible for fulfilling all obligations under the facility.

“The execution of the 2026 Syndicated Loan Agreement was intended to convert all loan facilities into Rupiah-denominated debt in order to mitigate foreign exchange fluctuation risks. Secure more favorable borrowing rate, and refinance the entire 2023 Syndicated Loan Agreement,” Plaza Indonesia Director, Evy Tirtasudira stated in a disclosure filed on Wednesday (10/6). 

Through the 2026 Syndicated Loan Agreement, Plaza Indonesia and PII are expected to gain several economic benefits, including the full conversion of their debt obligations into Rupiah. Since all facilities under the new agreement are denominated in Rupiah, the companies will completely eliminate their exposure to foreign exchange risk related it’s loan obligations. 

“This initiative continues the foreign exchange risk mitigation efforts that began with the amendment of the 2023 Syndicated Loan Agreement. With the implementation of the 2026 Syndicated Loan Agreement, the foreign exchange exposure associated with the loan obligations of both PII and Plaza Indonesia has been fully eliminated,” she said. 

Secondly, both companies secured a more competitive interest rate compared with the 2023 Syndicated Loan Facility, which is expected to reduce the company’s financing costs. 

Thirdly, the availability of an adequate refinancing facility provides long-term funding certainty for both PLIN and its parent company, Plaza Indonesia Investama. 

To secure the new financing, PLIN has pledged certain company assets as collateral. The company stated that the asset-backed structure was a requirement imposed by lenders and was considered necessary to obtain refinancing under terms deemed reasonable and beneficial.

Previously, in May 2022, PLIN and PII obtained a syndicated loan facility from CIMB Bank Berhad Singapore, Credit Suisse AG Singapore, Woori Bank Indonesia, BDO Unibank Singapore, and KEB Hana Indonesia. The facility amounted to US$300 million. 

In September 2023, PLIN amended the syndicated loan agreement, converting the majority of the facility into Rupiah-denominated debt while also securing lower borrowing costs. 

At the time the amendment was signed, the conversion exchange rate stood at Rp15,321 per U.S. dollar. As of March 31, 2026, the outstanding principal balance denominated in U.S. dollars amounted to US$84.3 million at PII and US$12.8 million at PLIN.

Based on Bank Indonesia’s closing exchange rate of Rp16,993 per US Dollar as of March 31, 2026, the currency movement resulted in unrealized foreign exchange losses of Rp141 billion for PII and Rp21 billion for PLIN on their US Dollar-denominated loan obligations. 

The losses were non-cash in nature and reflected the foreign exchange exposure associated with the remaining portion of debt still denominated in US Dollars after most of the facility had been converted into Rupiah under the 2023 amendment. 

Meanwhile, PII’s financial position as of December 31, 2025, indicated adequate liquidity, with a current ratio of 1.61x and a cash ratio of 1.30x. Profitability ratios showed a return on assets (ROA) of 1.88% and a return on equity (ROE) of 2.75%. In terms of solvency, PII recorded a debt-to-assets ratio of 31.73% and a debt-to-equity ratio (DER) of 46.47%.

Jakartaweekly.com recorded that now, Rupiah has depreciated significantly by more  7% year to date as of 11 June, 2026 increasing pressure on companies with U.S. dollar-denominated liabilities.