The table at the bottom of the page shows the ratios for 20 companies. All these companies are state-controlled (the central government being the majority shareholder) and are listed on the Indonesia Stock Exchange.

Aditya Perdana Putra, analyst at Semesta Indovest, commented on the list stating that national airline Garuda Indonesia is among the most worrisome companies as it created a significant amount of new debt in Q1-2018, while its corporate earnings are not too good. 

Garuda Indonesia reported a USD $64.3 million net loss for the January-March 2018 period, improving from (a revised) USD $101.2 million loss in the same period one year earlier. The management of the airline said it expects to see a small net profit in full-year 2018, after reporting a net loss of USD $216.5 million for 2017. However, it depends pretty much on the movement of the fuel price whether numbers can go in the green or stay in the red. Therefore, shares of Garuda Indonesia are not too attractive at the moment.

The construction companies, however, seem fine despite the high debt-to-equity ratio as it is more common for this type of company to invest in debt to finance a new project. After completion of the project there should emerge a new revenue stream, hence safeguarding a healthy cash flow. However, the high amount of debt that is taken on by these state-controlled construction companies (which act as agents in the government's ambitious infrastructure development program) does worry investors, evidenced by the fact that most of the companies' shares have been declining so far in 2018.

A company that is worth to be on investors' watch-list is steel manufacturer Krakatau Steel, Perdana Putra said. Despite its high debt-to-equity ratio, the company has not taken on much more debt and its net loss has declined drastically in Q1-2018. However, Perdana Putra added that investors are advised to remain in a wait and see mode (the company's Q2-2018 corporate earnings need to be studied first) before investing in the company.

Financial Ratios Publicly-Listed, State-Controlled Companies in Q1-2018:

Company    Debt to
Equity Ratio
Cash Ratio
Quick Ratio
Current Ratio
Indofarma     190.62     20.44      75.71       104.22
Kimia Farma     148.93     34.41     116.50       183.91
Perusahaan Gas Negara      98.18    216.26     354.03       365.25
Krakatau Steel     125.06     18.59      39.13        71.71
Adhi Karya     358.58     25.65     116.70       140.99
Wijaya Karya     240.53     44.02     153.95       161.95
Pembangunan Perumahan     187.03     36.92     137.41       158.79
Waskita Karya     353.93     14.18     110.34       116.45
Bank Negara Indonesia     606.17      8.97     113.55       113.55
Bank Rakyat Indonesia     596.77     11.16     115.42       115.42
Bank Tabungan Negara    1,091.39      8.25     101.69       101.69
Bank Mandiri     564.75     13.96     114.12       114.12
Aneka Tambang      66.73    106.73     146.65       175.24
Bukit Asam      56.11    163.52     245.96       264.37
Timah      87.80     41.77     131.44       219.36
Semen Baturaja      54.62     71.79     162.21       201.77
Semen Indonesia      60.96     45.24     116.83       159.30
Jasa Marga     346.42     22.45      55.21        55.66
Garuda Indonesia     354.37     13.92      41.68        47.93
Telekomunikasi Indonesia      71.97     62.11     116.47       117.82

Source: Bisnis Indonesia