Indonesia’s politically powerful Bakrie group, whose $1.2bn debt troubles froze Jakarta’s stock market for a week in October, appears to have escaped disaster after announcing deals that halve its liabilities while surrendering only a small portion of crown jewel Bumi Resources, the region’s biggest coal producer.

Bakrie & Brothers, the holding company of the ­family of chief welfare minister Aburizal Bakrie, said in a statement on Thursday that it had finalised an agreement with Northstar Pacific, a local private equity group, taking over debts of $575m.