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Business trends

Debt at Indonesian state contractors soars in infrastructure push

Government urged to tighten oversight amid fears over excessive borrowing

An accident at this Waskita Karya toll road project site in East Jakarta prompted the Indonesian government to temporarily halt construction on elevated projects.   © Getty images

JAKARTA -- The debt of Indonesia's four major listed state-owned construction companies jumped 57% by the end of 2017 from a year earlier to 156.2 trillion rupiah ($11.3 billion), raising alarm about excessive borrowing to fund the government's infrastructure push.

The combined revenue of the contractors -- Wijaya Karya, Waskita Karya, Pembangunan Perumahan and Adhi Karya -- also surged by 61% to 108.05 trillion rupiah as orders flooded in for building roads, railways and power plants, among other projects.

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