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Jokowi eyes ‘investment grade’ rating from S&P
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President Joko "Jokowi" Widodo inspects Tanjung Priok Port in North Jakarta in September 2014. The President is urging the Cabinet to improve the economy in a bid to improve the ease of doing business in Indonesia and to attain investment grade by rating agency Standard & Poor’s. (Antara)
P
resident Joko "Jokowi" Widodo is pushing his Cabinet to strengthen the economy in a bid to improve ease of doing business in the country and to reach investment grade by rating agency Standard & Poor’s (S&P).
Jokowi urged the ministers to not only follow up on the 12th economic policy package, which focuses on the ease of doing business, but also to strive to improve Indonesia's investment rating to improve the perception of Indonesia in the global economy.
"We must get the investment grade rating to expand Indonesia's access to international financial markets. I urge several measures on economic, fiscal and monetary policy so that we actually attain an investment grade," he said in a closed meeting on Monday in Jakarta.
An improved investor perception, the President continued, would lure more capital and investment inflow to Indonesia.
S&P, the only global rating agency that has yet to release an update on Indonesia’s sovereign rating, last gave a BB+ rating for Indonesia, slightly below investment grade rating of BBB, with a positive outlook. It is currently carrying out an assessment to update Indonesia’s rating.
Meanwhile, Moody's Investors Service and Fitch Rating have given Indonesia an investment grade rating. Moody's maintained the credit rating of Indonesia at Baa3 with a stable outlook in January.
At the beginning of January 2012, Fitch gave Indonesia a BBB- rating with a stable outlook. It was the first investment grade rating given by Fitch after 14 years.
On the ease of doing business, Jokowi said the 12th policy package was important to improve 10 indicators of business regulation. Licensing previously consisted of nine steps but has been cut to six, with 1,566 days of processing time trimmed to only 132 days.
"I ask for corrective measures in the policy package to be seriously implemented in the field, not only being written but also implemented in accordance with what we aim for," he urged.
In the World Bank's 2016 ease of doing business survey, Indonesia stands at 109. Jokowi wants to improve the ranking to 40 this year. (ags)
