Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Credit rating upgrade should boost investor confidence: BI

  • Marchio Irfan Gorbiano

    The Jakarta Post

Jakarta   /   Fri, April 13, 2018   /   05:37 pm
Credit rating upgrade should boost investor confidence: BI The Bank Indonesia (BI) building is located on Jl. MH Thamrin in Central Jakarta. (JP/Wienda Parwitasari)

The recent rating upgrade by Moody's Investors Service will boost investors’ confidence in the financial market, according to the head of Bank Indonesia’s financial market research, Nanang Hendarsyah.

“Although it particularly affects the sovereign bond, it will also positively affect other instruments, including corporate bonds,” he said in Jakarta on Friday.

On Friday, Moody’s upgraded its rating for Indonesia’s long-term, foreign currency-denominated debt to Baa2 with a stable outlook, making Indonesia equal to the Philippines and India, Reuters reported.

The rating agency’s confidence was improved after noting Indonesia’s prudent fiscal and monetary policies as well as the strengthening of its capital buffer, suggesting Indonesia’s capacity to withstand shocks was improved.

Nanang called on the private sector to harness the positive momentum generated from the current low interest rate regime and the country’s improved credit ratings.

“The currently low interest rate and good investment-grade ratings are a momentum that needs to be utilized by the private sector,” he said. (bbn)