Indonesia credit rating upgraded by Moody's
April 12 at 10:57 PM
JAKARTA, Indonesia â" Moodyâs upgraded Indonesiaâs credit rating on Friday due to increased confidence the government will maintain its recent track record of responsibly managing the national budget and interest rate policy.
In a boost for President Joko âJokowiâ Widodoâs ambitious plans to carpet Indonesia with modern roads, ports, rail and airports, Moodyâs Investors Service said state-owned enterprises taking on more debt to fund those projects does not pose a âsignificant risk.â
The upgrade raised Indonesiaâs sovereign credit rating to Baa2 from the lowest investment grade rating.
Citing improved economic management and the central bankâs focus on controlling inflation, Moodyâs said âthese policies and larger financial reserves are strengthening Indonesiaâs capacity to respond to shocks.â
A higher credit rating can reduce the co st of borrowing overseas and encourage foreign investment.
Indonesia, with a population of more than 260 million, is Southeast Asiaâs largest economy but still struggles with high levels of childhood malnutrition, low educational standards and widespread corruption.
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