Indonesia expects to receive triple-B credit rating in 2000<\/p>\n
JAKARTA (JP): Indonesia expects to receive a high-triple-B
\ncredit rating from Salomon Brothers by the end of the decade for
\nits economic reform and deregulation achievements, say analysts
\nat the investment bank.<\/p>\n
\"Indonesia has an excellent record of economic reform and
\nderegulation, sustainable financial stability and a steady growth
\noutlook as reasons for the improving sovereign credit outlook,\"
\nAsia-Pacific economist Andrew Freris said in a report published
\nby Salomon Brothers in Hong Kong on Thursday.<\/p>\n
According to the report The Republic of Indonesia:
\nConsolidating its Gains, which was written by three Salomon
\nBrothers analysts -- Julian Liau, Peter Plaut and Andrew Freris
\n-- the investment bank is optimistic that Indonesia's policies
\nwill continue to show progress.<\/p>\n
Prudent economic policies, the integration of the private
\nsector, a diversification of its industrial base and an ability
\nto maintain political and social stability were some of the
\nrating considerations.<\/p>\n
The analysts also predicted that the Gross Domestic Product in
\n1996 and 1997 will grow at 8 percent and 8.5 percent
\nrespectively, conditioned primarily by export growth.<\/p>\n
But the analysts warned of credit concerns that Indonesia will
\ncontinue to face, such as the issue of political succession, the
\ncountry's relatively high external debt burdens, maintaining non-
\noil export growth, enhancing domestic competitiveness, continuing
\nthe deregulation process, the unequal distribution of income and
\nmeeting the country's substantial development needs.<\/p>\n
Indonesia, the analysts noted, was last upgraded in April 1995
\nby Standard & Poor's from BBB- (with a positive outlook) to BBB
\n(with a stable outlook).<\/p>\n
The analysts expect Moody's to continue its conservative
\nstance and maintain its low-triple-B rating in the near term,
\nciting lingering concern with the issue of political change.(13)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/indonesia-expects-to-receive-triple-b-credit-rating-in-2000-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}