JAKARTA (TheInsiderStories) - Japan Credit Rating Agency, Ltd. (JCR) has revised the outlook on the Sovereign Credit Rating of the Republic of Indonesia from ‘Stable’ to ‘Positive’ and affirmed Indonesia’s BBB- (Investment Grade) issuer rating on March 7, 2017, the rating agency said in a statement.
JCR highlighted two key drivers of the change in Indonesia’s Sovereign Credit Rating outlook. First, the improvement on the investment climate promoted by a series of Economic Policy Packages and second, the containment of private external debt brought by Bank Indonesia’s prudential regulations on external borrowing.
The rating agency also mentioned that the implementation of 14 Economic Policy Packages since September 2015 aimed to improve industry competitiveness, purchasing power, investment, export, efficiency in the logistics, and tourism sector, demonstrates government commitment on structural reform.
In response to the news release, Governor of Bank Indonesia, Agus D.W. Martowardojo stated that “The revision of the rating outlook is as the result of Indonesian government and authorities continuous efforts to promote economic growth while maintaining macroeconomic and financial system stability despite a dynamic global environment.”
“The revised outlook increases the international stakeholders’ confidence on the improvement of Indonesia’s economic prospect underpinned by strong economic fundamentals. Bank Indonesia will continue to implement its credible and consistent policy mix, and strengthen coordination with the government to ensure economic resiliency to external shock, including continuous support to the implementation of structural reform,” he said.
JCR had previously affirmed the Sovereign Credit Rating Indonesia at BBB- / stable outlook on February 1st, 2016. (RF)