Indonesia's credit rating has been increased to BBB by Fitch rating agency, the second rating increase this year, after S&P upgraded them to BBB- earlier this year.
The new Fitch rating means that Indonesia is now on the second lowest investment grade level, and this could potentially mean cheaper credit for Indonesia. They will need it as the government spends on borrowing billions to fund infrastructure projects.
The reasons cited for the upgrade are the nation's economy's resilience to shocks, rising foreign-exchange reserves and strong economic growth.
Personally I am a bit puzzled by increase, and while macro economic indicators are indeed good, purchasing power and consumer confidence have been reported as low. Not to mention the social-political climate that is undoubtedly going to get worse as we near election season next year.
https://www.bloomberg.com/news/arti...h-credit-rating-upgrade-months-after-s-p-move
The new Fitch rating means that Indonesia is now on the second lowest investment grade level, and this could potentially mean cheaper credit for Indonesia. They will need it as the government spends on borrowing billions to fund infrastructure projects.
The reasons cited for the upgrade are the nation's economy's resilience to shocks, rising foreign-exchange reserves and strong economic growth.
Personally I am a bit puzzled by increase, and while macro economic indicators are indeed good, purchasing power and consumer confidence have been reported as low. Not to mention the social-political climate that is undoubtedly going to get worse as we near election season next year.
https://www.bloomberg.com/news/arti...h-credit-rating-upgrade-months-after-s-p-move
