"Our optimism for 2012 is increasing because we initially thought it would be achieved in 2012, not this year, so that the 2012 outlook will change, more confident, better as certain countries would use it as a reference for their investment," HattaJakarta (ANTARA News) - Chief economic minister Hatta Rajasa welcomed the raising of Indonesia`s debt rating to an investment grade by Fitch ratings agency saying it had boosted the government`s confidence.
"Our optimism for 2012 is increasing because we initially thought it would be achieved in 2012, not this year, so that the 2012 outlook will change, more confident, better as certain countries would use it as a reference for their investment," he said at his office here on Friday.
He said with the new rating Indonesia would certainly become the destination of investors and so more capital would come into the country.
He said people need not worry about the capital inflows because the government would manage them well.
"What is dangerous is if no capital inflow happens. So, we will manage them. We must be optimistic," he said.
He said the capital inflows had been more positive meaning more of them had gone to foreign direct investment (FDI) and less to portfolios.
"In 2011 the FDI has risen sharply to US$18-19 billion from merely US$12-13 billion in 2010. Investment in portfolios has dropped and shifted to FDI. The funds that go to MP3EI projects are clear," he said.
Hatta hoped in 2012 other ratings agencies such as Moody`s would follow suit. "Moody`s is ready, perhaps next year (to raise Indonesia`s debt rating)," he said.
Fitch ratings agency has raised Indonesia`s long term foreign and local currency issuer default rating (IDR) from BB+ to BBB- with a stable outlook.
The agency says with the new rating Indonesia had attained investment grade status.(*)
Editor: Heru Purwanto
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