JAKARTA (TheInsiderStories) - Rating and Investment Information, Inc. (R&I) 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 April 5, 2017.
R&I highlighted two factors of the revision in Indonesia’s Sovereign Credit Rating outlook. First, the current administration’s monetary policy and fiscal management focused on stability has resulted in the improvement of external position reflected in narrower current account deficits, an increase in foreign reserves, as well as the stabilization of growth in private sector external debt, and maintained fiscal discipline demonstrated by prudent fiscal deficit and low government debt.
Second, the progress in deregulations for a better investment climate can be viewed as a signal of the government’s strong commitment to pursuing reforms.
In response to the news release, Governor of Bank Indonesia, Agus D.W. Martowardojo stated that “International stakeholders have again recognized Indonesia’s economic resilience amidst global economic and financial uncertainty. This positive achievement is in part the result of a harmonious policy synergy between Bank Indonesia and the government in maintaining macroeconomic stability while promoting economic growth momentum.”
“Bank Indonesia will continue to strengthen coordination with the government to maintain macroeconomic stability as well as promote structural reform acceleration to support sustainable economic growth,” he said.
R&I had previously affirmed the Sovereign Credit Rating Indonesia at BBB- / stable outlook on April 4th, 2016. (*)