Postal operator enters grace period after missing sukuk payment, with Fitch warning of a possible default rating if obligations remain unpaid.
Fitch Ratings Indonesia has downgraded the national long-term rating and senior unsecured debt rating of state-owned postal and logistics company PT Pos Indonesia (Persero) to ‘C’ from ‘A’, after the company failed to pay its lease-based Islamic bond (ijarah sukuk) profit distribution that matured on July 8, 2026.
The rating agency assigned no outlook to the new rating because securities in the ‘C’ category are considered highly volatile. Fitch said the missed payment triggered a 14-working-day grace period, placing the company in what it defines as a “Near Default” condition.
In parallel with the downgrade, Fitch also lowered Pos Indonesia’s Standalone Credit Profile (SCP) to c(idn) from bbb(idn).
Missed sukuk payment raises default risk
According to Fitch, the downgrade was driven by Pos Indonesia’s failure to pay the first scheduled ijarah profit installment on its 2024 Continuous Ijarah Sukuk I Phase I, covering Series A, B, and C, which mature in January 2028, January 2030, and January 2032, respectively.
The agency said the company is now in a contractual grace period under the sukuk issuance documents. If the overdue payment is not settled before the grace period expires, Fitch warned that the company’s credit profile could deteriorate further.
Fitch stated that the start of a grace or cure period following the non-payment of a material financial obligation is consistent with its ‘C’ rating definition, which reflects a borrower that is close to default.
The agency added that Pos Indonesia’s national long-term rating could be downgraded to Restricted Default (RD), while its debt securities could fall to ‘D’, if the overdue obligation remains unpaid or if the company reaches a restructuring agreement with sukuk holders that weakens creditors’ rights and meets Fitch’s criteria for a distressed debt exchange.
“If the settlement obligation is not resolved before the grace period expires, Pos Indonesia’s rating could potentially be further downgraded to Restricted Default (RD). This could have a broader impact, as it concerns the reputation of State-Owned Enterprises (BUMN) as a whole,” Program and Policy Director at the Prasasti Center for Policy Studies Piter Abdullah told Indonesia Business Post (IBP), on Monday, July 20, 2026.
Government ownership no longer supports rating
Fitch noted that Pos Indonesia remains a government-related entity (GRE) because all of its shares are owned by PT Danantara Asset Management and the company carries out a public service mandate in Indonesia’s postal and logistics sector.
However, the agency said government ownership is no longer sufficient to support the rating because of the company’s severely weakened financial condition and elevated short-term default risk.
Fitch said it will continue monitoring the company’s request to postpone the sukuk profit payment and any approval process related to the delayed obligation. The agency added that a successful settlement of the overdue payment within the grace period could support a positive rating action.
Company cites cash flow constraints
Earlier, Pos Indonesia confirmed that it was unable to pay the sixth periodic profit distribution on its 2024 Continuous Ijarah Sukuk I Phase I Series A–C, amounting to Rp24.11 billion (approximately US$1.36 million).
The payment was due on July 7, 2026, before 2:00 p.m. Western Indonesia Time, but the company failed to meet the deadline because of short-term liquidity constraints.
“The reason the company could not make the payment is that its current cash position does not allow the payment to be made,” Acting President Director Prasabri Pesti said in a disclosure to the Indonesia Stock Exchange, on Thursday, July 16, 2026.
Corporate Secretary Iwan Gunawan said the company has submitted a request to the Indonesian Central Securities Depository (KSEI) to adjust the payment schedule in accordance with applicable regulations.
“All operational activities and customer services continue to run normally,” Iwan said.
He added that the delay reflects short-term cash flow pressures rather than the company’s long-term business viability or service quality. Pos Indonesia, he said, remains committed to fulfilling all obligations to sukuk holders and is actively coordinating with the trustee, KSEI, and other related parties to resolve the outstanding payment as quickly as possible.