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|Date: 28 September 2009|
|Rating agency Moody's International Services raised Indonesian government's debt rating one level from “Ba3” to “Ba2” for foreign currency and rupiah.
According to Aninda Mitra Moody's analyst Partners International Services, Indonesia is relatively better than other countries in “Ba” category in facing global economic crisis. Indonesia's economic management improved due to the appropriate policy applied to survive in the future.|
|"These developments highlight the growing credibility and predictability of government policies that are expected to ensure macroeconomic stability," said Mitra told Reuters. |
While moving up, Indonesia is still ranked two levels below Singapore, Malaysia, and Thailand. However Indonesia is still better than Philippines, which will affect the investment prospects in Indonesia. According to Mitra, the increase is due to the improved ranking of credit profiles derived from the prudential policies, structural reforms, and good debt management. In addition low deficit budget and strong economic growth will reduce government debt and private.
Ability to pay the debt is also expected to be steady. "Though Indonesia is facing more market turmoil than other countries in the same rank, reduced use of debt in the financial as well as proactive and flexible policies provide fundamental support for loan," Mitra said.
"Probably Indonesia needs at least two years to achieve the rank of investment value," said Bank Danamon economist Anton Gunawan. (Koran SINDO)