KONTAN.CO.ID - JAKARTA. A plunge in the rupiah could leave Indonesian firms exposed to $4 billion in debt next year, after credit ratings agencies hit some companies this week with another round of credit downgrades as the coronavirus pandemic chokes economic activity.

Indonesia's increase in private sector debt has outstripped the global average, according to the World Bank, while French bank Natixis sees Southeast Asia's largest economy as among the most exposed to a dollar credit crunch in the Asia Pacific.

Outstanding foreign private debt was $203 billion as of January, according to Bank Indonesia (BI) data.

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Fitch Ratings has put Indonesian homebuilders Lippo Karawaci on a negative outlook for its B- rating amid "unprecedented weakening in domestic demand" as the coronavirus outbreak hits economic growth.

Moody's Investor Services has downgraded property firm Alam Sutera Realty, Agung Podomoro Land and tyre-maker Gajah Tunggal due to the rupiah's fall.

The rupiah is emerging Asia's worst performing currency after losing 15% so far this year to its weakest since the 1998 Asian financial crisis.

The virus pandemic and rupiah slide weakened the balance sheets of Indonesian companies, said Moody's analyst Jacintha Poh, adding that "this is credit negative for many companies."

Investors in Indonesian corporate bonds usually hold to maturity as the market isn't liquid.

Poh said by telephone that large amounts of Indonesian debt will mature next year, while companies are also exposed now through interest payments.

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Indonesia's central bank has since 2015 made it mandatory for companies to hedge a portion of their short-term foreign exchange liabilities.

Governor Perry Warjiyo said debtors have begun asking banks for deferral in interest payments.

Editor: Yudho Winarto