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| Investment Grade, its important? |
Indonesia finally reaching investment grade, expressed as one of the countries in the world which was considered worthy for foreign investment. Important stamp was obtained after Fitch Ratings raised long term foreign and local currency Issuer Default Ratings (IDR) Indonesia from BB+ to BBB-.
Fitch Ratings is a leading global rating agency based in New York and London and has 51 branch offices throughout the world. Government of Indonesia's debt rating to assess the ordination to the level that would shift the investment grade foreign investment from portfolio to direct investment (foreign direct investment, FDI). According to Coordinating Minister Hatta Rajasa upward trend in FDI is starting to look at this year and will be increasingly enlarged after Indonesia was given the rank of investment grade.
FDI positions in 2010 of approximately U.S. $ 13 billion and in 2011 increased to U.S. $ 18 billion. "Then, in the portfolio rather decreased," Hatta said when met at his office in Jakarta.
Not only from Fitch Ratings, the government estimates that another leading rating agencies, like Moody's and Standard & Poor's, in the near future also will soon confer investment grade status to Indonesia. "Moody's is getting ready early next year, Standard & Poor's also so," Hatta said confidently.
Agree with him, the Minister of Trade Gita Wirjawan said Indonesia's ratings rise could boost foreign direct investment to Indonesia amounted to U.S. $ 9 billion or equivalent to Rp81 trillion (with exchange rate Rp9.000). "Naturally, the increase in FDI rankings will increase by less than 1 percent of Gross Domestic Product (GDP) or U.S. $ 9 billion," Gita said.
In its release, the Director of Fitch's Asia-Pacific Sovereign Ratings Philip McNicholas explain the increase in ratings reflect Indonesia's economic growth is strong enough, the ratio of public debt is low and continues to decline, strong external liquidity, as well as macro policy framework that carefully.
In fact, Fitch projecting GDP growth in Indonesia on average could reach more than 6 percent per year over the forecast period (until 2013), in the midst of a recession-ridden global economy. This institution also assesses Indonesia domestic-oriented economy has created a relatively strong growth without creating external imbalances.
Indonesia get Investment Grade from Fitch
Fitch Ratings is a leading global rating agency based in New York and London and has 51 branch offices throughout the world. Government of Indonesia's debt rating to assess the ordination to the level that would shift the investment grade foreign investment from portfolio to direct investment (foreign direct investment, FDI). According to Coordinating Minister Hatta Rajasa upward trend in FDI is starting to look at this year and will be increasingly enlarged after Indonesia was given the rank of investment grade.
FDI positions in 2010 of approximately U.S. $ 13 billion and in 2011 increased to U.S. $ 18 billion. "Then, in the portfolio rather decreased," Hatta said when met at his office in Jakarta.
Not only from Fitch Ratings, the government estimates that another leading rating agencies, like Moody's and Standard & Poor's, in the near future also will soon confer investment grade status to Indonesia. "Moody's is getting ready early next year, Standard & Poor's also so," Hatta said confidently.
Agree with him, the Minister of Trade Gita Wirjawan said Indonesia's ratings rise could boost foreign direct investment to Indonesia amounted to U.S. $ 9 billion or equivalent to Rp81 trillion (with exchange rate Rp9.000). "Naturally, the increase in FDI rankings will increase by less than 1 percent of Gross Domestic Product (GDP) or U.S. $ 9 billion," Gita said.
In its release, the Director of Fitch's Asia-Pacific Sovereign Ratings Philip McNicholas explain the increase in ratings reflect Indonesia's economic growth is strong enough, the ratio of public debt is low and continues to decline, strong external liquidity, as well as macro policy framework that carefully.
In fact, Fitch projecting GDP growth in Indonesia on average could reach more than 6 percent per year over the forecast period (until 2013), in the midst of a recession-ridden global economy. This institution also assesses Indonesia domestic-oriented economy has created a relatively strong growth without creating external imbalances.
Indonesia get Investment Grade from Fitch
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