State-owned oil and gas producer Pertamina sells global medium terms note (MTN) worth US$750 million in the midst global market. Initially the company would sell US$2 billion of bonds. This is part of Pertamina’s US$10 billion bond issue program, to finance the its business expansion program. Last week, Pertamina failed to generate enough demand for the bonds and announced that it has terminated its cash tender offers program to purchase 2021 and 2022 Notes, amid the poor market.

Based on the 2017’s financial report, Pertamina has liability about US$10 billion but in the other hand the net cash only around US$5 billion. Most of the debt will mature in 2021. If calculated since now to the maturity date, Pertamina is experiencing difficulties in fulfilling its obligations if not maintaining its financial liquidity.