Minister Purbaya Urges Investors to Buy Stocks After S&P Affirms Indonesia's Rating

Jakarta (ANTARA) - Finance Minister Purbaya Yudhi Sadewa has advised investors to start buying shares and selling US dollars after S&P Global Ratings maintained Indonesia’s credit rating at BBB for the long term and A-2 for the short term, with a stable outlook.

He said the decision by S&P is a strong signal that various concerns about Indonesia’s economic condition have proven unfounded.

“Going forward, negative sentiment in the capital markets, the bond market and the rupiah exchange rate should disappear quickly. So from now on, get ready to buy shares, and if you hold dollars, sell them,” Purbaya said at the Parliament complex in Jakarta on Tuesday.

He assessed that the rating affirmation from S&P could boost investor confidence, including among foreign investors, in the prospects of the Indonesian economy.

However, he believes astute investors should seize this momentum immediately.

“If investors are smart, they should move fast. Smart domestic investors should get in now. It is now clear what our obstacles are. All this time, we have been feared to be unable to manage the fiscal side, even though the economy is growing faster,” he explained.

The Finance Minister said doubts had previously emerged regarding the direction of government policy and the strength of Indonesia’s economic fundamentals. There was even speculation circulating that Indonesia’s credit rating was at risk of being downgraded.