S&P RATING NOT TO AFFECT INVESTMENT IN INDONESIA

By Andi Abdussalam

Jakarta, June 4 (Antara) - The international rating agency Standard and Poor's (S&P) has provided Indonesia with the BB+ rating, a level lower than 'Investment Grade', but the government is convinced it will not disturb investment interest in Indonesia.          Indonesia's economic conditions now are relatively better than those of many advanced countries after the global economic gloom. Moreover, two other international standard rating agencies, Fitch and Moody¿s, have awarded Indonesia with an investment grade level.         The conditions of Indonesia's debt-to-gross domestic product (GDP) ratio and its debt management are far better than those of other emerging nations, and even better than those of countries which have secured the Investment Grade level.         "Frankly speaking, we question the reasons of the S&P (to provide us with BB+ rating). We see that its reasons are the same as those in its previous rating. So, there is nothing new," Finance Minister Bambang Brodjonegoro said in Jakarta Thursday.         The S&P in its latest publication this month did not yet provide Indonesia with the "Investment Grade" level. The agency rated Indonesia's long-term state debentures with the BB+ level and short-term securities with the B level. Prospects in the long-term for Indonesia are positive.

RI ECONOMY REMAINS STRONG DESPITE S&P'S RATING OUTLOOK DOWNGRADE

by Andi Abdussalam

Jakarta, May 19 (Antara) - The international rating agency Standard and Poor's (S&P) has recently downgraded its ratings outlook on Indonesia's debt but Indonesian officials are convinced it will not significantly affect the country's economic performance.         "This is the S&P ratings outlook it issues based on its judgment. We also have our own judgment where Bank Indonesia (BI/the central bank) is of the view that Indonesia's economy remains secure," BI Deputy Governor Halim Alamsyah said.         Deputy Finance Minister Mahendra Siregar concurred Halim's, saying that Standard & Poor's downgrade of its ratings outlook on Indonesia's debt will not affect foreign investors' interest, particularly in the security sector.          "I think the S&P's downgrade of its outlook on Indonesia's debt will not significantly affect bonds market because businesses in world today are in liquidity surplus and they need instruments for investment," Mahendra said.           After all, Indonesia's economic fundamentals remain in good control, so that the country's economy will remain to grow although Standard and Poor's (S&P) has downgraded its ratings outlook on the country's debt from BB+ positive to BB+ stable, Halim Alamsyah said.          However, S&P said Indonesia was still able to balance its weak policies and external pressures with strong growth prospect, conservative fiscal policies and relatively good debt management.          It said that Indonesia still maintained relatively controlled debt and fiscal management with an estimated debt-to-gross domestic product ratio of 22 percent in 2013l.