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ISAT gets additional Rp 700 billion loan
Publicly listed telecommunications firm PT Indosat has secured a Rp 700 billion (US$59
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ublicly listed telecommunications firm PT Indosat has secured a Rp 700 billion (US$59.3 million) loan from state lender PT Bank Negara Indonesia (BNI).
Indosat obtained the credit facility, which comes due in a year, from BNI after signing an agreement on Monday.
Indosat president director Alexander Rusli said on Monday that the company had opted for a short-term loan due to the high volatility in the local currency.
He said as quoted by kontan.co.id that the company planned to use the money for refinancing and cash flow.
According to its first quarter financial report, the company was Rp 36.99 trillion in debt, including Rp 13.22 trillion in short-term loans.
With regard to cash flow, Alexander said Indosat planned to spend some of the money on capital and operational expenditure.
He added that the company had to ensure it had stable cash flow, citing slow billing payments in some regions.
The price of Indosat's shares (ISAT) fell by 0.89 percent on the Indonesia Stock Exchange (IDX) on Monday, closing at Rp 3,900 apiece.
