Outlook for RI bond stable: Moody's

Outlook for RI bond stable: Moody's

JAKARTA: International ratings agency Moody's assigned on
Thursday a B2 rating to the government's new sovereign bond, with
a stable outlook.

Moody's praised improvements in the country's economy and
external financial position in recent years as a strong signal on
the part of the government toward reform programs, a statement
said.

Despite this, challenges remained for the country if it wanted
to generate higher investments and economic growth to resolve
chronic unemployment problems, it added, while also warning about
the risks of stalled progress in the reform program due to the
election.

The government plans to issue sovereign bond worth at least
US$400 million next month. The bonds, the first to be issued
since the crisis, are expected to mature in 2014. -- JP