Indonesian Companies Capitalize on Lower Interest Rates Through Banking Credit Facilities

Increased Borrowing Activity

As interest rates continue their downward trend, Indonesian publicly listed companies are increasingly turning to banking credit facilities to support their business operations and expansion plans. This surge in borrowing activity is driven by the desire to take advantage of lower borrowing costs in the current market environment.

Notable Credit Facilities

Several major companies have recently secured significant credit facilities from Indonesian banks. PT ABM Investama Tbk (ABMM), through its subsidiary PT Cipta Kridatama, has obtained a syndicated loan equivalent to Rp 4.2 trillion with an accordion option worth Rp 1 trillion. This substantial credit facility represents approximately 36.03% of the company's equity as of Q3 2025.

Another notable transaction involves PT Golden Energy Mines Tbk (GEMS), whose subsidiary PT Borneo Indobara (BIB) has secured a term loan from Bank Mandiri with a limit of Rp 900 billion. The loan has a tenure ranging from 5 to 7 years from the date of agreement signing. According to GEMS' Corporate Secretary, the facility aims to bridge the cash flow gap for business development and meet general corporate needs.

Strategic Implications

These credit facilities demonstrate companies' proactive approach to capitalizing on the current low-interest-rate environment. By securing significant funding at more favorable terms, these companies can accelerate their growth plans, optimize their capital structure, and enhance their competitive position in their respective markets.

The increased borrowing activity also reflects the banking sector's continued support for corporate Indonesia, providing necessary liquidity for business expansion and economic growth. As the year-end approaches, more companies are likely to follow suit in leveraging the benefits of lower interest rates through strategic borrowing.