Moody's Ratings revises Pelindo's outlook to negative following change in sovereign outlook

(Singapore, February 06, 2026)--Moody's Ratings (Moody's) has today affirmed Pelabuhan Indonesia (Persero) (P.T.)'s (Pelindo) Baa2 issuer and senior unsecured ratings. We have also affirmed its Baseline Credit Assessment (BCA) of baa2.

At the same time, the outlook on the ratings was revised to negative from stable.

The rating action follows the affirmation of the Government of Indonesia's Baa2 issuer rating and change in outlook to negative from stable on 5 February 2026. For full information on the sovereign rating action, please refer to our press release published on 5 February 2026: https://ratings.moodys.com/ratings-news/458869.

RATINGS RATIONALE

Today's rating action primarily reflects the negative outlook on Indonesia's Baa2 sovereign rating, which reflects increased risks to Indonesia's policy credibility, as reflected in reduced predictability and coherence in the policy making process, alongside less effective policy communications over the past year. If sustained, the trend could erode Indonesia's long established policy credibility, which has supported solid economic growth and macroeconomic, fiscal and financial stability. The affirmation of Indonesia's sovereign rating takes into account continued economic resiliency, backed by structural factors including its natural resource base and strong demographics, supporting stable and solid GDP growth outcomes.

Given Pelindo's full government ownership and its close linkage to Indonesia's broader economic conditions, a potential weakening of the sovereign credit profile would exert downward pressure on Pelindo's ratings, as captured by the negative outlook, notwithstanding the fact that its Baa2 rating does not incorporate any uplift based on expected government support.

Pelindo's BCA of baa2 reflects the company's consistently strong operating performance, demonstrated by solid growth in throughput. The company's deleveraging plan over the next 4-5 years also supports the current BCA level.

We expect Pelindo's adjusted funds from operations (FFO)/debt to be around 15%-17% over the next two to three years, which is in line with the current rating level. The latest estimates are lower than our previous forecast, reflecting increased uncertainty around throughput growth given evolving domestic policies and external trade dynamics, as well as a slower deleveraging path than previously anticipated.

The ratings also consider Pelindo's sizable capital expenditure, which is largely expansionary, and its funding plan, which will likely rely primarily on internally generated cash.

Pelindo's ratings reflect our expectation of a high likelihood of extraordinary support - if needed - from, and high level of dependence on, the Government of Indonesia (Baa2 negative). However, this does not result in any rating uplift because Pelindo's BCA is already at the same level as the sovereign rating.

FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS

In view of the negative outlook, we do not expect any upward rating momentum on Pelindo's ratings.

We could return the outlook on Pelindo to stable if the outlook on Indonesia's sovereign rating returns to stable and there is no material deterioration in Pelindo's standalone credit quality.

Conversely, we could downgrade Pelindo's ratings and BCA, if the sovereign rating is downgraded. The BCA could be downgraded if Pelindo's standalone credit quality weakens, with its FFO/debt dropping below 12% on a sustained basis.

The methodologies used in these ratings were Privately Managed Ports published in April 2023 and available at https://ratings.moodys.com/rmc-documents/401274, and Government-related Issuers published in May 2025 and available at https://ratings.moodys.com/rmc-documents/443641. Alternatively, please see the Rating Methodologies page on https://ratings.moodys.com for a copy of these methodologies.

The net effect of any adjustments applied to rating factor scores or scorecard outputs under the primary methodology(ies), if any, was not material to the ratings addressed in this announcement.

Pelabuhan Indonesia (Persero) (P.T.) (Pelindo) is a dominant port operator in Indonesia. It operates more than 100 ports, including the country's largest and busiest container port, Tanjung Priok in Jakarta, and other main hub ports such as Belawan, Tanjung Perak and Makassar. Since March 2025, PT Danantara Asset Management has became the shareholder of Pelindo following the transfer of Series B shares from the Republic of Indonesia. Despite these changes, the government remains the controlling shareholder of Pelindo through its ownership of the Series A Dwiwarna share.

REGULATORY DISCLOSURES

For further specification of Moody's key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions in the disclosure form. Moody's Rating Symbols and Definitions can be found on https://ratings.moodys.com/rating-definitions.

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For ratings issued on a program, series, category/class of debt or security, certain regulatory disclosures applicable to each rating of a subsequently issued bond or note of the same series, category/class of debt, or security, or pursuant to a program for which the ratings are derived exclusively from existing ratings, in accordance with Moody's rating practices, can be found in the most recent Credit Rating Announcement related to the same class of Credit Rating.

For provisional ratings, the Credit Rating Announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating.

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Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.

The Global Scale Credit Rating(s) discussed in this Credit Rating Announcement was(were) issued by one of Moody's affiliates outside the EU and UK and is(are) endorsed for use in the EU and UK in accordance with the EU and UK CRA Regulation. (ends)