Indonesia’s Pertamina said it has slashed the amount it plans to raise through long-term debt financing this year after the government paid back some fuel-subsidy money it owed the state energy company.
“We might not need so much this year because our cash condition is quite good as a result of the resolution of debt matters with the government as well as efficiency,” Pertamina Finance Director Arief Budiman said in a text message on Tuesday.
The company now expects to limit debt financing to not more than 15 percent of its initial target of $2 billion, Pertamina spokeswoman Wianda Pusponegoro told Reuters.
The company has set a capital expenditure budget of $4.4 billion this year, partly to fund expansion plans.
