Moody’s Investors Service said four Indonesia’s companies — MNC Investama (BHIT), Gajah Tunggal (GJTL), Lippo Karawaci (LPKR), Alam Sutera Realty (ASRI) — are most exposed to currency depreciation due to significant mismatch. In its recent report, the rating agency said these companies have more than 70% of their debt in US dollars, but generate all, or a majority of their revenue in rupiah.
Three Indonesian property companies use long-term hedges, which protect the principal amounts of their US dollar debt against a depreciation of the Indonesian rupiah up to predetermined levels. Separately, three companies have no specific protections, but their leverage and stable or growing EBITDA help limit the effect of currency depreciation, while four companies have less than 10% of their total debt denominated in US dollars, and this low exposure makes protections unnecessary.
