Sat, 17 Apr 2010

Jakarta (ANTARA News) - Bank Indonesia (the central bank/BI) believes the country will reach the investment grade next year thanks to its improved economic indicators.

"We are optimistic that Indonesia will reach the investment grade next year. Indonesia`s economic prospects are considered positive by World Bank standards," Deputy Bank Indonesia International Director Dian Ediana Rae said here on Friday.

One of the economic indicators was that Indonesia was among the few countries to register an economic growth of 4 percent plus last year amid a global economic crisis, she said.

The Indonesian economy last year grew 4.5 percent, the third-highest of the G20 countries after China and India.

The central bank had estimated the Indonesian economy would grow 5.5-6 percent this year, and further move up to 6-6.5 percent in 2011, on the back of stronger domestic and global economic recovery.

Dian said the Indonesian government`s commitment to spur economic growth by developing infrastructure facilities, including roads, power plants, and seaports would also improve the country`s ratings.

The relatively stable political and security conditions would also indirectly shore up investors` confidence in the domestic market, she said.

Fitch Ratings on Jan. 25 upgraded Indonesia`s long-term foreign and local currency ratings to BB+ from BB, one level below investment grade. Moody`s Investors Service on Jan. 21 maintained its Ba2 rating for Indonesia, two levels below investment grade.(*)