By: Arifin *)
On Thursday, May 21, 2015, the international rating agency, Standard and Poor’s (S&P) changed the outlook for Indonesia’s rating from stable to positive, namely BB +. Indonesia will gain increased possibilities rating again within the next 12 months, to investment grade, reported detik.finance.
Finance Minister Bambang Brodjonegoro explained, the advantage with the outlook that Indonesia would have helped when need finance from the market. Because the cost of funds or interest expense will be lower and increase investor base.
Citing of pages Bank Indonesia, Thursday (21/05/2015), Sovereign Analyst Main S & P to Indonesia A. Kyran Curry said that the main factor supporting the outlook change is the improvement of the policy framework that has managed to increase the credibility of monetary policy and financial system. Policy more effective and targeted sectors have strengthened fiscal and foreign exchange reserves, and improve external resilience of the Indonesian economy.
Governor of Bank Indonesia, Agus DW Martowardojo said , outlook rating from S & P is a recognition of the resilience of the Indonesian economy as a result of policy coordination that have been taken by the authorities economy.
Economist of PT Bank BCA David Sumual said increased rating outlook is given as fiscal conditions Indonesia healthier after diverting the fuel subsidy to productive sectors, quoted from pages of Republika.co.id.
“The outlook hike is a signal that the S & P will soon be raised Indonesia’s rating to investment grade within six or 12 months ahead”, he added
Nevertheless, David reminded the government to be consistent in implementing the policy. This is so that Indonesia could actually get investment grade rating or the investment of the international rating agency Standard & Poor’s (S&P).
Currently, only the S & P is not given investment grade rating. While the international debt rating agencies, Fitch and Moody’s that had already been given.
*) The Author is Jakarta Regional Contributors