President wants Indonesia get investment grade rating from S&P

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Photo by Secretary Cabinet

JAKARTA (TheInsiderStories) – President Joko Widodo has asked ministries and institutions to prioritize Indonesia’s ease of doing business in order to boost investment grade, said President on Tuesday.  Jokowi’s statement refers to the recent Economic Policy Package, which focuses in cutting down investment procedures – from 94 procedures to 49 procedures.

“We need to encourage capital inflow and investment. I ask that the stimulus can actually be implemented,” said president during meeting with Standard & Poor’s (S&P) lead by Managing Director Guy Deslondes at the State Palace.

Other rating agency, Moody’s and Fitch Rating have given Indonesia a good reviews, while the Standard and Poor (S&P) still places Indonesia on bottom level, with BB+ ranking. Shortly after the announcement of Economic Package chapter XII, S&P updated the ranking to BB+ positive.

 

Minister of Finance Bambang Brodjonegoro added, that the periodic visits each year to conduct review of investment rating in Indonesia, especially investment in the context of the portfolio.

He said, at the meeting, the President stressed that the focus now is how Indonesia and speed up development of infrastructure, both derived from financing its budget or from state-owned enterprises and private sector.

The President also expressed examples of projects that have been stalled long, long time never any progress, but in the reign of the current in a relatively short time has been successfully completed. In this regard, the President pointed to the example Jatigede Dam and in the Trans Java toll.

“As we know, at this time of the S & P we have not received investment grade. Last year, we we get the assessment was BB with positive outlook, ” the minister said.

According to him, the President also expressed how he did by doing direct monitoring to the field to ensure that the project runs on time and in accordance with the provisions or the specifications required.

“In addition, the President also stressed that Indonesia is very encouraging to attract investment, both domestic investment and also investment from abroad,” explained Bambang.

Economic Policy packages that have been issued since the middle of last year, according to the minister, is one way to improve the business climate. Start by cutting the number of permits, cut the number of days in the permitting process, and also to provide facilities and incentives to the investment itself.

“At the end, the President stressed that as President in this government, he will emphasize on reform, Indonesia is one of the core emerging economies that commit to reform,” He said.

Meanwhile, Minister of Trade Thomas Lembong added that the President’s economic reform program focus to the main principles of openness and competition. He said Indonesia’s trade position relative calm compared to neighboring countries or rival countries, and the President understands the economic position of Indonesia is located on national competitiveness.

“We will continue to open up our economy, to force ourselves to be able to compete,” the minister said.

He continued, that Indonesia wants to sharpen competition for a position fix in import-export trade strategy with a balance of trade because it affects the foreign exchange reserves in Bank Indonesia.

Thomas also explained to the S & P that investment improved because of a change of philosophy that total, from the previously closed and defensive now be open and internationalist.

“S & P enough to appreciate all these efforts to improve the position of the economy, Indonesia’s competitiveness, including through reforms of the economy and also efforts to develop and customize trading strategies exports including inter alia by establishing a trade agreement with the bloc economies as in Europe , ” He said.

Standard & Poors or also known as (S & P) is one of the subsidiary of McGraw-Hill which is a rating agency on stocks and bonds.

 

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Source: The Insiderstories
President wants Indonesia get investment grade rating from S&P

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