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