"The stable prospects also reflect the condition of the country`s capital market and bonds issued in the past 12-18 months what have slowly reduce the government`s debts,"Jakarta (ANTARA News) - Moody`s Investor Service has raised Indonesia`s rating and the bonds it issues to Ba1 from Ba2 earlier due to the country`s economic resilience and sustainable macro-economic balance.
Moody`s Vice President-Senior Analyst of Sovereign Risk Group Aninda S Mitra said in a press statement received here on Monday that the higher rating had also been given to Indonesia because of the country`s debt and foreign exchange reserves which are still appropriate and also because of the improving prospects of foreign investment which is hoped to be able to strengthen the country`s external position and its economic prospects.
"We have raised the credit rating because of the economic momentum which was expected to be supported by stable domestic demand and the normal speed and sequence of policy and structural reforms and increasing direct foreign investment. The country`s debt and foreign exchange reserves at the central bank are also on the right track, Aninda said.
The stable prospects assessment is also awarded to Indonesia because of the policies that reduce uncertainty including those relating to bank supervision and effective economic management although Indonesia is now facing inflation challenges and speculative inflows of capital.
"The stable prospects also reflect the condition of the country`s capital market and bonds issued in the past 12-18 months what have slowly reduce the government`s debts," Aninda said.
Bank Indonesia deputy governor Hartadi A Sarwono hailed the higher rating which in general reflects better prospects and risks in funding of economic activities.
"This also is line with BI`s assessment which is closely monitoring various risks of decline that has to be handled with various policies that have already been done or will still be done," he said.(*)
Editor: Aditia Maruli Radja
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