S&P upgrades Indonesia credit after Widodo election win

FILE - In this Aug. 23, 2013, file photo, a customer holds a stack of rupiah banknotes at a money changer in Jakarta, Indonesia. Ratings agency Standard & Poor’s has upgraded Indonesia’s sovereign credit rating following the election of Joko Widodo to a second term as president. The organization said the upgrade reflects Indonesia’s strong economic growth prospects which “we expect to remain following the reelection of Joko Widodo recently.” (AP Photo/Tatan Syuflana, File)

JAKARTA, Indonesia — Ratings agency Standard & Poor's said Friday it has upgraded Indonesia's sovereign credit rating following the election of Joko Widodo to a second term as president.

The organization said the upgrade reflects Indonesia's strong economic growth prospects, which "we expect to remain following the reelection of Joko Widodo recently."

The long-term rating was increased to BBB from BBB minus and potentially makes it easier for the government to borrow abroad and at lower interest rates.

Official results last week confirmed Widodo won 55.5% of the vote in the April 17 election. His opponent Prabowo Subianto has alleged massive fraud but not provided any credible evidence. The Subianto campaign has submitted a Constitutional Court challenge to the election result.

"Although this dispute and isolated pockets of unrest associated with it add some uncertainty to Indonesia's political settings over the near term, we do not expect it to have a material impact on the long-term policy environment or economic outlook," S&P said.

Seven people were killed in what police said was orchestrated rioting in the capital Jakarta last week following announcement of the official results.

The ratings agency said Indonesia's per capita economic growth has averaged 4.1% over the past decade compared with an average of 2.2% for countries at a similar income level.

Analysts forecast the country, the world's fourth most populous, to be among the biggest economies by 2030.

Suspected suicide bombs in Jakarta kills 3...

May 24, 2017

Two suspected suicide bombings near a bus terminal in Indonesia's capital Wednesday night killed...

Indonesia president urges military to stay out of...

Oct 5, 2017

Indonesia's president has urged the military to stay out of politics and remain loyal to the...

Hundreds leave Papua villages in separatist...

Nov 20, 2017

Indonesian police say hundreds more people have left villages in easternmost Papua that were at the...

Bali volcano erupts but flights operating normally

Nov 26, 2017

A volcano on the Indonesian island of Bali has rumbled into life with a series of eruptions that...

Bali volcano ash drifts 4.7 miles high, airport...

Nov 29, 2017

An erupting volcano with a deadly history on Indonesia's Bali island has spread drifting ash 7,600...

Penggerak pasaran mengikut TradingView

About Us

Duniaga is Malaysia’s top local source for business news and information where people head to stay connected with the business news. We give daily in-depth analysis on the business happenings in the country.

Contact us: sales[at]duniaga.com

Subscribe Now!