The government has alloted 150 trillion rupiah ($9.12 billion) in the budget to help companies that need restructuring as GDP growth is projected to slow to 2.3% in 2020 from 5% last year.
Coronavirus cases in Indonesia have risen to more than 1,700 and the respiratory disease has claimed 170 lives.
MATURITY WALL
S&P Global Ratings' director Xavier Jean told Reuters the rupiah's drop has hurt investor sentiment towards high-risk issuers.
This complicates refinancing needs with a debt maturity wall of $4.5-$5 billion coming in 2021 to 2023, for companies in real estate, commodities, power and the communication, media and techonology sectors, Jean said.
Fitch said companies in property, energy, metals and mining, airlines, and auto- and leisure-related sectors will all face growing debt risks.
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Moody's Poh is most concerned about property firms because they borrow in U.S. dollars, but generate income in rupiah and cannot launch sales when people are told to stay home.
Poh cited Alam Sutera, Modernland Realty, Gajah Tunggal and investment firm MNC Investama as the most affected.
A Modernland spokesman said the company had mitigated currency risks through hedging. The other companies did not respond to a request for comment.
Still, S&P's Jean said the bond markets were "all but closed" to weaker Indonesian companies.
"So unless they have diversified their funding sources over the years, which few have done, refinancing risk and the likelihood of failed repayment will only go up until debt capital markets normalise," said Jean. ($1 = 16,440 rupiah)