Rating upgrade likely: Minister

Rating upgrade likely: Minister

Indonesia's credit ratings will likely improve if the upcoming
presidential elections run smoothly, Coordinating Minister for
the Economy Dorodjatun Kutjoro-Jakti said on Tuesday.

"I'm optimistic that our rating will increase to B-plus," he
said in a convention, referring to Standard & Poor's rating on
Indonesia.

In October last year, Standard & Poor's Ratings Services
upgraded Indonesia's foreign currency debt rating by one notch to
single-B, citing the country's improved macroeconomics picture
and progress in trimming the state budget deficit.

Dorodjatun said a ratings upgrade will help boost foreign
investment, which has been in the doldrums due to political
jitters, legal uncertainties and a corrupt judicial system.

S&P had said a ratings upgrade is being held back by some
uncertainty over this year's landmark elections, as well as
continued difficulty in attracting foreign investment that the
country needs to boost economic growth.

Legislative elections earlier this month were peaceful, but
some analysts are still not ruling out the possibility of street
violence in the run-up to the direct presidential elections in
July.

Moody's Investors Service has a B2 foreign currency debt
rating on Indonesia, while Fitch Ratings rates Indonesia B+. --
Dow Jones