Pertamina to test Indo offshore loan regulation change

By Pan Yue
10 Sep 2020

The Indonesian government’s move to shut down a committee exclusively focused on approving offshore loans from borrowers is getting its first test, as Pertamina lines up a $3bn deal for the acquisition of energy assets. Despite the change coming into effect about two months ago, there is still uncertainty around how the new process will work, writes Pan Yue.

In July, Indonesia’s president, Joko Widodo, issued a new regulation disbanding 18 special government teams and committees. This included the offshore commercial borrowing co-ordinating team (PKLN).

Until then, state-owned enterprises were required to report to and gain approval from PKLN for all their offshore loans. Private sector firms ...

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