Top economic authorities to hold overseas road shows
Top economic authorities to hold overseas road shows
Evi Mariani, The Jakarta Post, Jakarta
Three of the country's top economic officials will begin a
road show on Wednesday that will take them to the world financial
centers of New York, London and Dubai.
The road show is part of efforts to maintain investor
confidence in the economy, particularly after the International
Monetary's economic bailout program ends later this year.
The officials are Bank Indonesia Governor Burhanuddin
Abdullah, Coordinating Minister for the Economy Dorodjatun
Kuntjoro-Jakti and Minister of Finance Boediono.
Burhanuddin said on Tuesday they would try to brief
international investors about the latest progress in the
country's economy, and about the government's post-IMF economic
reform program.
After a delay of a month, the government late on Monday
revealed the reform program in a white paper.
The post-IMF program covers three main areas: maintaining
macroeconomic stability, continuing financial sector reform and
increasing investment, export and job opportunities. The white
paper is a matrix of various programs to be implemented by the
government in the remainder of this year and next year.
Indonesia entered the IMF bailout program in late-1997
following regional financial crisis. Since then, the government
has had to issue a set of reforms approved by the IMF every
quarter in exchange for the fund's money.
After the program ends, the government will be free to design
its own reforms without intervention from the IMF.
"We are also scheduled to meet with international credit
rating agencies like Moody's, S&P (Standard&Poors) and Fitch
IBCA," Burhanuddin said of the road show. "We hope the agencies
can upgrade our debt rating."
Indonesia's current debt rating is triple B-, or below
investment grade. The higher the rating, the lower the cost of
borrowing for a country.
Indonesia has seen improved macroeconomic stability over the
past year as inflation has gone down, the rupiah strengthened and
interest rates fallen, raising hopes that the country's sovereign
rating will be upgraded.
Late last month, Boediono said a government team would fly to
Dubai in September for the International Monetary and Finance
Committee (IMFC) forum scheduled for Sept. 22 there. The team
will promote the country's planned US$400 million international
bond offering, which is crucial for helping to finance the state
budget.
After leaving the IMF program, Indonesia will no longer be
eligible for debt rescheduling facilities from the Paris Club of
creditor nations, creating a new burden for the budget.
Burhanuddin said he was optimistic the overseas road show
would be a successful.
"I think the contents of the white paper will be just fine
(with investors)," he said. "The success will depend on the way
we convince them (investors)."