Fitch may upgrade RI's rating<\/p>\n
Rendi A. Witular, The Jakarta Post, Jakarta<\/p>\n
London-based Fitch Ratings may upgrade Indonesia's rating soon
\non the basis of improving macroeconomic stability, Bank Indonesia
\nGovernor Burhanuddin Abdullah said on Thursday.<\/p>\n
\"We have met with Fitch officials in London. They will visit
\nthe country in November to review their rating. This will help
\nour efforts to further improve the economy,\" Burhanuddin told the
\npress on Thursday.<\/p>\n
Burhanuddin was among some of the country's top officials who
\nrecently launched a road show in the financial centers of London,
\nNew York and Dubai to brief international investors about the
\ngovernment's economic reform programs after the end of the
\nInternational Monetary Fund's economic bailout program. The IMF
\nprogram will end later this year.<\/p>\n
The road show was also aimed at promoting the country's
\nplanned US$400 million international bond offering, which is
\ncrucial for helping finance the state budget.<\/p>\n
Burhanuddin explained that should Fitch upgraded the country's
\nrating, as Moody's did recently, the move would boost
\ninternational business confidence in Indonesia.<\/p>\n
The upgrade would also help boost the interest of foreign
\ninvestors in taking up the planned $400 million issue of
\nsovereign global bonds next year, the first bond issue by the
\ngovernment since the economic crisis of 1997.<\/p>\n
Indonesia's current rating with Fitch is \"B\" with stable
\noutlook, still four notches below \"BBB\" or investment grade,
\nwhich indicates no risks for investors.<\/p>\n
On Tuesday, Hong Kong-rating agency Moody's Investors Service
\nupgraded Indonesia's sovereign rating by one notch in light of
\nthe country's stronger external financial footing and falling
\ngovernment debt.<\/p>\n
The country's rating was raised from B3 to B2, but again this
\nis still five levels below investment grade.<\/p>\n
Burhanuddin explained that to attain investment grade,
\nIndonesia still needed some time to implement the White Paper on
\nthe post-IMF reform program.<\/p>\n
\"We can achieve investment grade by maintaining macroeconomic
\nstability, increasing fiscal and foreign exchange reserves,
\ncontinuing financial sector reform and increasing investment,
\nexports and job opportunities,\" said Burhanuddin.<\/p>\n
When asked about the reactions from investors to the White
\nPaper during the road show, Burhanuddin said the investors
\nwelcomed the program.<\/p>\n
He explained that the investors mostly asked about Indonesia's
\nability to sustain its macroeconomic stability, to lower the
\ninflation and interest rates, and to stabilize the rupiah.<\/p>",
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