Indonesian Minister Hopes Fitch′s Assessment Followed by Other Rating Agencies

19 December, 2011 | Source: ANTARA News

Nusa Dua, Bali (ANTARA News) - Finance Minister Agus Martowardoyo said he would like rating agencies like Standard & Poor and Moody`s to follow Fitch`s example in giving Indonesia investment grade status.

"We are still waiting for Standard & Poor and Moody`s to follow suit but if they still need time for analysis, that`s alright," he said on Friday commenting on Fitch`s decision to raise Indonesia`s debt rating from BB to BBB- , thereby giving the country investment grade status.

"Investors have already acted as if they have given (the country) an investment grade status but let us continue to work well so that we can perform even better," he said.

The minister hoped with the new status, the infrastructure and manufacturing sectors in the country would be developed by private parties.

He said infrastructure development could boost the growth of other sectors and eventually increase the country`s economy.

"Infrastructure development will ensure that Indonesia`s economy will continue to improve, become healthier and sustainable. If the infrastructure sector is good, other sectors will also develop," he said.

The minister said the manufacturing sector that rose sharply in 2011 would play an important role in creating jobs in the field of agriculture.

In view of that he hoped the manufacturing sector could grow further up to 10 percent especially after Indonesia received an investment grade status.

"Now it has been at around 6.6 percent so it is growing and we hope it will continue to reach to 10 or more than 10 percent and this is not something impossible to achieve because Indonesia is very strong," he said.

Acting chief of the Fiscal Policy Agency of the finance ministry, Bambang Brodjonegoro, said he hoped the new status would stop the slowdown in direct investment to the country.

He said a slowdown is possible because of current debt crisis in Europe which is likely to continue until next year.

"We hope the growth of investment both real and in portfolios would not lose the good momentum," he said.

 

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