Fitch Affirms Pelita Indonesia Djaya at 'AA+(idn)' and 'F1+(idn)'; Outlook Stable

(Fitch Ratings - Jakarta - 26 May 2026)--Fitch Ratings Indonesia has affirmed PT Pelita Indonesia Djaya's (PID) National Long-Term Rating of 'AA+(idn)' and National Short-Term Rating of 'F1+(idn)'. The Outlook on the National Long-Term Rating is Stable.

The affirmation of PID's ratings reflects Fitch's unchanged view that PID is closely linked to its parent, PT Pelayaran Nasional Indonesia (Persero) (PELNI, AAA(idn)/Stable), through its role in supporting PELNI's core maritime transportation and ancillary activities. Fitch continues to assess PID under our Parent and Subsidiary Linkage (PSL) Rating Criteria, with a rating that is one notch below that of PELNI. PID's operations remain integral to the group, supporting Fitch's view that PELNI has a high incentive to provide support.

PID's Standalone Credit Profile (SCP) remains at 'a+(idn)', reflecting unchanged standalone credit characteristics, including its important role within the PELNI group, an 'a' financial profile and a 'Low Midrange' risk profile. PID's SCP remains one notch below PELNI's because its linkage to the public service framework is indirect through services provided to PELNI. PID's medium-term capex plan continues to moderate the assessment, but does not change the current rating outcome.

'AA(idn)' National Ratings denote expectations of a very low level of default risk relative to other issuers or obligations in the same country or monetary union. The default risk inherent differs only slightly from that of the country's highest rated issuers or obligations.

'F1(idn)' Indicates the strongest capacity for timely payment of financial commitments relative to other issuers or obligations in the same country. Under the agency's National Rating scale, this rating is assigned to the lowest default risk relative to others in the same country or monetary union. Where the liquidity profile is particularly strong, a "+" is added to the assigned rating.

KEY RATING DRIVERS

Parent-Subsidiary Relationship

Parent-Subsidiary Relationship

PID is assessed under the 'Stronger Parent, Weaker Subsidiary' path in accordance with the PSL criteria. The entity is majority-owned and controlled by PELNI, which oversees PID's strategic direction, investment and budgetary planning, dividend policy and board appointments. PID also submits regular performance and financial reports to PELNI. This demonstrates close parental control, supporting the parent-subsidiary relationship between the two entities, with the following assessments.

Legal Incentive: Low

Fitch assesses the parent's legal incentive to support as 'Low' due to the lack of legal support obligations, such as cross-default provisions, undertakings, debt guarantees or comfort letters. Intra-group funding may be available, but PELNI is not contractually obligated to bail out a distressed PID.

Strategic Incentive: Medium

PID provides support functions to PELNI that are essential for PELNI's ability to operate government-mandated public-service obligation routes. PID does not contribute a large share of PELNI's consolidated revenue through its third-party business, but it is larger than PELNI's other subsidiaries and plays a meaningful role within the group. PID's strategic value, with over 90% of its services provided to PELNI, allows the parent to retain control over key service costs, contributing to the parent's competitive position.

Operational Incentive: High

Fitch assesses the operational incentive as 'High' as PID is closely integrated with PELNI's daily operations as an in-house provider of logistics, ship supply, maintenance and manpower services. PID's predominantly captive service provision helps PELNI manage service costs and maintain operational efficiency. PID's absence would not necessarily cause severe disruption or exceptionally high long-term replacement costs, given the availability of alternative service providers, but the company provides clear benefits through cost control and service continuity.

The assessment is supported by PELNI's strong influence over PID's business decisions. The parent sets annual service contracts and margins, and may assign employees across the group at its discretion, indicating a high degree of managerial alignment. These factors demonstrate that PID operates as a managed extension of PELNI.

Standalone Credit Profile

PID's SCP is assessed at 'a+(idn)' based on a 'Low Midrange' risk profile and 'a' financial profile under Fitch's Public Policy Revenue-Supported Entities Rating Criteria.

Risk Profile: 'Low midrange'

The 'Low Midrange' assessment is based on 'Midrange' revenue risk, 'Weaker' expenditure risk, 'Midrange' liabilities and liquidity risk, and a 'b' operating environment score. The operating environment score reflects Fitch's view of Indonesia's economic environment, financial market development, bankruptcy regime, reporting policies for borrowing, and control and monitoring.

Revenue Risk: 'Midrange'

Fitch assesses PID's revenue risk as 'Midrange' to reflect stable demand linked to PELNI's operating needs, offset by material customer concentration and limited pricing flexibility. More than 90% of PID's revenue comes from intra-group contracts or government-related demand, which supports revenue stability, while dependence on PELNI constrains diversification. Pricing is generally set through intercompany arrangements that support cost recovery, but adjustments require agreement with PELNI and may be influenced by public-service and cost-containment considerations.

Expenditure Risk: 'Weaker'

Fitch assesses PID's expenditure risk as 'Weaker' as it has predictable operating costs because its provides routine support services, but its limited scale and bargaining power constrain cost flexibility. Cost increases can outpace revenue growth, and PID may absorb inflation-driven pressure before any price adjustment takes effect. Capex needs are moderate, but replacement requirements and lease-funded investment limit timing flexibility.

Liabilities and Liquidity Risk: 'Midrange'

PID's liabilities and liquidity risk is assessed at Midrange to reflect a conservative capital structure, low refinancing and market risk, and stable cash inflows from PELNI's service contracts. These strengths are balanced by modest liquidity buffers, high customer concentration, and no clear evidence of robust backup liquidity support.

Financial Profile 'a'

Revenue continues to increase and has exceeded pre-pandemic levels since 2023, reaching IDR795.7 billion in 2025. PID's margins are likely to narrow as operating expenditure growth exceeds revenue growth. We expect the company to diversify its business lines by exploring other shipping-related services to PELNI. We expect high capex as PID increases investment in ship repair and unloading equipment. As a result, we expect PID's leverage ratio to weaken to 7.1x by 2030 but the debt service cover ratio to improve slightly to 0.3x from 0.2x in our last review. This results in the 'a' financial profile assessment, at the weaker end of the 'a' category.

Other Rating Factors

We assess asymmetric risk as 'Neutral', underpinned by good management and governance, a strong regulatory framework, sound accounting policies, reporting and transparency, and neutral country risk and legal regime.

Peer Analysis

PID is the only entity in the Indonesian international public-finance sector that is rated under Fitch's PSL criteria rather than the Government-Related Entities (GRE) Rating Criteria because Fitch does not expect extraordinary support to flow directly from the Indonesian government to PID. Instead, Fitch expects support to come through PID's parent, PELNI, which controls the entity. This results in Fitch rating the company top down minus one from its parent, based on the PSL assessment.

Other Indonesian public-finance peers are rated under the GRE criteria and most are equalised with the sovereign (BBB/Negative) at the highest national rating. PID is rated four notches above PT Pos Indonesia (Persero) (POST, A(idn)/Positive). POST's lower SCP of 'bbb(idn)' reflects its weaker business and funding characteristics.

Issuer Profile

PID, operating as PELNI Services, provides vessel support, port handling, logistics, human resource outsourcing and facility maintenance for PELNI. As a captive provider, PID's services support PELNI's mandate for nationwide maritime connectivity, including remote regions.

Key Assumptions

Our rating case is a through-the-cycle scenario that incorporates a combination of revenue, cost and financial risk stresses. It is based on 2021-2025 historical figures and 2026-2030 key assumptions:

- average operating revenue growth of 7.7% a year in 2026-2030, based on PELNI's demand for its services;

- average operating expenditure growth of 9.1% a year in 2026-2030, driven by steady annual increases in staff salaries and cost of goods and services, which will be largely aligned with historical annual growth;

- average net capex of IDR10.0 billion in 2026-2030 (2021-2025: IDR5.8 billion), based on a rising need to replace ageing assets.

Rating Sensitivities

Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade

- A downward revision in our ratings on PELNI would lead to negative rating action on PID.

- A weakening of PELNI's strategic or operational incentives to support PID could lead to a wider rating gap between PID and PELNI.

- Dilution of the parent's shareholding and control of PID might lead us to reassess the parent-subsidiary linkage.

Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade

- A strengthening of PELNI's legal or strategic incentives to support PID could lead to an upgrade.

Climate Vulnerability Signals

The results of our Climate.VS screener did not indicate an elevated risk for PID.

Public Ratings with Credit Linkage to other ratings

PID's ratings are credit-linked to PELNI's ratings.

Sources of Information

The principal sources of information used in the analysis are described in the applicable criteria.

References for Substantially Material Source Cited as Key Driver Rating

The principal sources of information used in the analysis are described in the Applicable Criteria. (ends)