(Bloomberg) -- The weakening rupiah and a surprise rate hike are weighing on Indonesian companies that are facing a wall of maturing dollar debt. 

Companies from the Southeast Asian nation have more than $8.1 billion in US currency notes maturing between now and the end of 2025, according to data compiled by Bloomberg. The biggest hump is in the second quarter of next year, when Indonesian borrowers have $3.2 billion in dollar bonds coming due — the highest quarterly total in data going back to 2016. 

Indonesia’s currency has depreciated nearly 5% against the dollar so far this year and recently hit a four-year low. The rupiah breached a key level of 16,000 per dollar earlier this month, which led to a surprise interest rate hike Wednesday by the country’s central bank to curb losses.

The falling currency is making it costlier for Indonesian companies that earn most of the revenues domestically to service their dollar debt. Meanwhile, high US interest rates and bond yields also mean borrowers will have to pay more to refinance their foreign liabilities. 

The central bank’s hike of the benchmark rate by 25 basis points to 6.25% also means Indonesian companies will likely face higher borrowing costs domestically. The benchmark 10-year Indonesian government bond yield reached 7.07% this week, the highest since November.

“A declining rupiah will weigh on weaker issuers and may hurt their ability to repay maturing debt,” said Teddy Hariyanto, senior credit analyst at PT Mandiri Sekuritas. Financially stronger companies would likely have set aside enough cash to service their dollar bonds, he said. 

Credit spreads on the broader universe of Indonesian corporate bonds have widened in recent days. The yield premium on Indonesian corporate and quasi-sovereign dollar notes stood at 148 basis points over Treasuries on Tuesday, versus 140 basis points for the broader Southeast Asian region. 

Read More: Weak Rupiah Builds Case for Bank Indonesia to Resume Rate Hike

PT Perusahaan Gas Negara, a unit of state-owned energy company PT Pertamina, has $396.7 million of US-currency notes maturing next month. A $132 million bond issued by a unit of junk-rated property developer PT Agung Podomoro Land also comes due in June. 

Both securities were issued at a time when US interest rates were much lower than they are today. The real estate company’s dollar bond was quoted this week at 75 cents on the dollar, down from more than 90 cents earlier this year.

--With assistance from Tassia Sipahutar.

(Updates with Indonesian central bank’s rate hike decision throughout.)

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