TEMPO.CO, Jakarta - Finance Minister Sri Mulyani Indrawati claimed that the rise of rating from international rating institution Standard & Poor's (S&P) will make market perception towards investment in Indonesia more positive. Today, S&P raises Indonesian rating to investment grade level.
"This is expected to stimulate investment decision of domestic investors either by means of stock market, banking financing, or corporate funding," Sri Mulyani said in Jakarta on Friday, May 19.
With such positive faith from investors, Sri Mulyani explained, domestic companies will decide to increase their investments in Indonesia.
"Foreign companies will follow suit. We will keep on improving including increasing ease of doing business to boost foreign capital flow," she said.
Standard and Poor’s (S&P) rating institution placed Indonesia in investment grade status with the rating of BBB- or stable outlook. S&P revealed that the rise of the rating is based on the reduce of fiscal risks along with more realistic government budget policy.
Such policy is considered limiting the worsening possibilities of deficit and reducing the risks of government debt ratio increase to GNP. S&P also estimates improvement in state revenue as an impact of tax amnesty and more controls fiscal expenditure management.
ANGELINA ANJAR SAWITRI