Indonesia's new president, Prabowo Subianto, faces a difficult challenge in managing the massive debt of the country's state-owned enterprises (SOEs), which currently stands at around $186 billion.
The companies are vital to Indonesia's economy, taking on huge debt as part of a massive infrastructure push under the previous president.
This expansion saw major state-owned builders and other SOEs take on large amounts of debt to complete large projects.
However, this debt is now proving difficult to maintain as interest rates rise, creating financial pressure.
This situation has the effect of hindering Indonesia's goal of rapid economic growth, which relies on SOEs building critical infrastructure.
Some SOEs have already had to restructure their debt, and others may need support from the government to stay on track.
Solutions discussed include merging troubled companies with stronger ones or narrowing their focus to avoid competition among SOEs.
Ultimately, how Prabowo deals with this debt challenge could impact investor confidence, especially in local bonds, and shape the future of Indonesia's economy.