Capital Inflow at Rp108tn after S&P Bumps Indonesia`s Rating
Translator
Editor
Kamis, 1 Januari 1970 07:00 WIB
TEMPO.CO, Jakarta - Bank Indonesia Governor Agus Martowardojo said that after Standard & Poor's (S&P) raised Indonesia's status to investment grade, the amount of capital inflow has reached Rp108 trillion.
"This is quite an achievement since in the same period last year it only reached Rp62 trillion," Agus said in Jakarta, Monday, May 29.
According to him, the actual impact of Indonesia's rating upgrade will be felt in the next 6-18 months, as investors need time before investing in Indonesia.
Earlier in May, international rating agency S&P upgraded Indonesia's credit rating to investment grade with a stable outlook. According to S&P, the rating increase is based on Indonesia's declining fiscal risk as the government's budget policies become more realistic.
Looking ahead, Agus said the Central Bank will continue to monitor the potential increase of the Fed Fund Rate. However, he believes inflation and the rupiah exchange rate will be under control. "Indonesia's foreign exchange reserves are also quite good," he said
ANGELINA ANJAR SAWITRI
