Days after taking charge of Southeast Asia’s biggest economy, Indonesia’s president needs a plan to deal with rising borrowing costs for key state-owned enterprises carrying $186 billion of debt.

Former Gen. Prabowo Subianto needs to fix the balance sheets at companies including the national carrier and biggest steelmaker, after his predecessor spent $800 billion on an infrastructure push that sent many state builders’ debt to record levels.

The challenge is heightened by a government grappling with a decades-old question of just how involved it should be in an economy where it still operates hotels and drug stores.