BI: Reliability Indonesian Economy World Recognized

Jakarta
BI welcomed Indonesia's debt status upgrade by Japan Credit Rating Agency (JCR) until it reaches the level of "Investment Grade" which shows the recognition of the tough economy of Indonesia.

"This rating increase is a reflection of improved rating agency perceptions and assessments of the situation of the Indonesian economy proved resilient.
Predicate "investment grade" will add to confidence of foreign investors to Indonesia.

With the joint efforts of the strategic and focused, this step is believed to be followed by international rating agencies, "said Deputy Governor of Bank Indonesia, Hartadi A. Sarwono, in Jakarta, Tuesday.

JCR on July 9 and then improve the rating of Indonesia to achieve the level of "Investment Grade" for long-term debt with foreign currency (foreign currency long-term senior debt) from the previous BB + to BBB-. While for the long-term debt in local currency (local currency long-term senior debt) increases from the beginning of BBB-to BBB with the outlook for each of the "stable".

In a press release, JCR stated that this increase reflects the increasing political and social stability along with the progress in democratization and decentralization in Indonesia, the prospects for sustainable economic growth solidnya supported by domestic demand, and reducing the public debt burden as a result of fiscal management carefully .

In addition, the JCR also considered Indonesia increasingly resilient to external shocks due to accumulation of foreign reserves and increasing capacity for external debt management and recovery efforts undertaken by the Yudhoyono administration to lay the structural framework of the handling problems, especially in infrastructure development.

Principal analyst JCR, Yoshihiko Tamura and Satoshi Nakagawa, believe that Indonesia will maintain the level of relatively high economic growth while maintaining macroeconomic stability and fiscal health in coming years.

JCR last time rating action against Indonesia on July 7, 2009, when the sovereign rating was upgraded to BB + with stable outlook. With this upgraded rating by JCR, the position of the Foreign Currency Long-Term Senior Debt is BBB-/Stable and Local Currency Long-Term Senior Debt are BBB / Stable. (Ant / try/analisadaily.com)