Moody's paints positive outlook for RI<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
International credit rating agency Moody's Investors Service has
\nmaintained its positive outlook for Indonesia, on the back of the
\ncountry's political stability and continued commitments to
\nreform.<\/p>\n
"This (positive outlook) is due to a diversified economy that
\nhelps check volatility, increased -- though not perfect --
\npolitical stability, and progress in reform that has been
\nachieved since the election of President Megawati Soekarnoputri
\nin 2001," Moody's vice president Steven Hess said in the agency's
\nannual report, as reported by Dow Jones.<\/p>\n
The U.S.-based agency said the country had made some progress
\nin several key areas of its reform program, especially in its
\nasset sales, including crucial privatization and divestment of
\ngovernment shares in recapitalized banks.<\/p>\n
Despite constant public pressure against selling national
\nassets, Indonesia has been making some headway in the two
\nprograms.<\/p>\n
Only recently, the government sold its stake in the country's
\nsecond largest telecommunications firm PT Indosat. The government
\nhas also started the divestment process of Bank Danamon.<\/p>\n
Moody's also pointed to a stable fiscal performance as another
\nreason for the encouraging note on Indonesia.<\/p>\n
"The government's fiscal performance is also better," said
\nHess. "The budget deficit target was met in 2002, and the
\ngovernment's revised fiscal targets for 2003 appear achievable,
\nalthough the margin for error is not great."<\/p>\n
Nevertheless, the agency also noted some areas the country
\nneeded to address.<\/p>\n
It said that Indonesia's B3 country ceiling for foreign
\ncurrency debt reflected the continued fragility of its external
\nfinances due to a lack of investor confidence, continued weakness
\nin the banking sector and high public-sector debt.<\/p>\n
It also warned of a possible worsening of the country's
\nfinancial condition next year, when it terminates the existing
\nrole of the International Monetary Fund in designing reform
\nprograms.<\/p>\n
The economic ties between Indonesia and the IMF, which was
\nstarted in 1999, ends at the end of this year.<\/p>\n
However, debates have already been intensified over the need
\nfor the country to quickly split from the IMF, with critics
\nsaying that many of the IMF's programs have played a part in
\npushing the economy deeper into crisis.<\/p>\n
"Statements from some in the government concerning relations
\nwith the IMF are causing us to look closely at the country's
\nfinancial position next year," Hess said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/moodys-paints-positive-outlook-for-ri-1447893297",
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