INDONESIA – American financial services firm Standard and Poor’s (S&P) revised Indonesia’s rating outlook from Stable to Positive and affirmed the rating at BB+.
The positive outlook reflects the possibility that S&P could raise ratings on Indonesia over the next 12 months.
The main sovereign analyst for S&P Indonesia, Kyran A. Curry, mentioned that the main factor supporting this decision is improvements in Indonesia’s policy framework which have enhanced monetary and financial sector management.
Greater policy effectiveness and predictability have resulted in expanded fiscal and reserve buffers and improved Indonesia’s external resilience.
The Governor of Bank Indonesia, Agus D.W. Martowardojo said that improvement of rating outlook from S&P is as predicted, but the next target is to obtain an increase towards the investment grade from S&P.
S&P is currently the only agency that has not position Indonesia as investment grade. – BusinessNewsAsia.com