S&P Maintains Rating, Is Indonesia Increasingly Attractive to Foreign Investors?

Amidst the pressure of global uncertainty sentiment, Indonesia’s financial market received positive news from S&P Global Ratings, which maintained Indonesia’s sovereign credit rating at BBB for the long term and A-2 for the short term with a stable outlook. CNBC Indonesia Managing Editor Ayyih Achmad Hidayah described S&P Global Ratings’ assessment as positive news for Indonesia because it can provide confidence for global investors to re-enter the Indonesian financial market. Furthermore, this assessment will make government debt spending more efficient due to more competitive interest rates. On the other hand, the Indonesian capital market is still facing a number of pressures, primarily related to the issue of Indonesian share data transparency, so it is hoped that the transformation efforts of the bourse authority can have a positive impact.