Japan Credit Rating (JCR) has raised the debt rating of Indonesia to BBB+ with a stable outlook - Photo by Finance Ministry Office

JAKARTA (TheInsiderStories) – Japan Credit Rating (JCR) has raised the debt rating of Indonesia to BBB+ with a stable outlook. Earlier in April 2019, the agency provides the country’ debt rating BBB with a positive outlook.

In its report, the JCR stated that the increase was based on an assessment on Indonesia’ economic growth robust supported by domestic consumption, a deficit State Budget and the central government also controlled, resilience to external shocks, which are supported by exchange rate flexible and monetary policy and foreign exchange reserves are strong enough.

Furthermore, the agency appreciated the ongoing reform of the President Joko Widodo administration, including reform on government spending, restrictions on fuel subsidies, as well as infrastructure development continues to progress and faster than expected.

In addition, JCR also paid attention to the effort to simplify the rules through the Omnibus Law to facilitate foreign direct investment as a counterweight to the current account deficit.  Then rater also considers that trimming the fiscal deficit to 1.76 percent of Gross Domestic Product (GDP) in Budget 2020.

In addition, an efforts to suppress the stated debt to less than 30 percent of GDP is a feasible plan can be achieved by the current government.  JCR also recognized on the resilience of Indonesia’ economy amid the global economic challenges. The Indonesian government utilize credit rating votes to boost foreign direct investment and the entry into the Japanese market.

In 2019, the government successfully issued the bonds with a tenor of relatively long-tenor with a yield is increasingly competitive, this is a transaction in which the bonds through the largest initial public offering by a country in Asia. These achievements reflect that the famous Japanese investor confidence is very thorough and carefully increasing the instrument to invest in government bond.

Indonesia’s debt rating last position:

Debt Rating Agencies Debt rating Outlook
Fitch BB Stable
Moody’s Baa2 Stable
S & P BBB Stable
Japan Credit Rating Agency BBB + Stable
Rating & Investment BBB Stable


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