Indonesian national oil company seeks $2.5 billion loan.

According to informed sources, Indonesian state oil giant Pertamina is seeking a $2.5 billion short-term loan, which could be one of the largest dollar transactions in Indonesia this year. The sources said that the borrower has appointed Mitsubishi UFJ Financial Group to arrange a one-year loan for working capital. Due to the confidential nature of the discussions, these sources requested anonymity. They stated that the loan facility will be syndicated to a broader market in the future. A spokesperson for Pertamina has not immediately responded to requests for comment via text message. The sources pointed out that this proposed loan by Pertamina will add to the wave of dollar loans in Indonesia over the past year; meanwhile, given the recent deadly protest activities, this loan will also serve as a litmus test for the confidence of foreign banks. Previously, the social unrest, which has now subsided, led to selling in the stock and bond markets, and currently Indonesia's markets are in a phase of recovery. Fitch Ratings said in a report on Wednesday that if the continued, widespread instability persists, it could damage Indonesia's sovereign credit rating by dragging down economic growth and exacerbating fiscal pressures.