Sign up | Log in



Home  >>   Daily News  >>   Indonesia  News  >>   Economy  >>   Fitch revises RI outlook to positive
NEWS UPDATES Asean Affairs        26  February 2011

Fitch revises Indo outlook to positive

Related Stories

February 23, 2011
Indonesia to be the next BRIC

February 21, 2011
Experts weigh in on Indo economic policy

February 12, 2011
A slippery slope in Indonesia

February 8, 2011
Indonesia hopes for private investment

February 5, 2011
Bank Indonesia raises interest rate

Fitch Ratings upgraded Thursday Indonesia’s sovereign rating outlook to BB+ positive from BB+ stable mainly thanks to favorable macroeconomic prospects, paving the way for the country to secure investment grade in the course of one year.

“The positive outlook reflects Fitch’s view that Indonesia’s favorable macroeconomic prospects are likely to see the credit profile strengthen further over the next 12 to 18 months, despite near-term risks from inflation and potentially volatile capital flows,” Andrew Colquhoum, Fitch’s director and head of Asia Pacific sovereign ratings, said in a statement.

The BB+ rating with positive outlook is one notch below investment grade, which would attract more investment to Southeast Asia’s biggest economy. Faster progress in low tax take, infrastructure deficiencies and corruption would further support the case for an upgrade, he added.

“Long-standing weaknesses in economic and credit fundamentals including deficiencies in physical infrastructure and a high reported prevalence of corruption weigh on the ratings. Faster progress in tackling these would help secure Indonesia’s prospects for sustained growth and would support the ratings.”

In the statement, Fitch cited Indonesia’s economic growth, government debt to GDP ratio and foreign reserves as the positive sides of the country’s economy, but mentioned inflation as a threat to the economy’s expansion.

Foreign reserves swelled to a record US$96.2-billion high as of end of December 2010. The country’s economic growth exceeded estimates in 2010, reaching 6.1 percent on significant growth in investment as well as strong exports and domestic consumption. The debt to GDP ratio also fell to 26 percent by year-end, “well below” other country’s, Fitch said.

But as the economy expands and with surging food prices, inflation reached a 20-month high of 6.96 percent at the end of 2010, exceeding the government’s 5.3 percent and the central bank’s 6 percent target.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Today's  Stories    26  February 2011 Subsribe Now !
• Indonesian mud volcano erupting for 25 years
Subcribe: Asean Affairs Global Magazine
• Fitch revises RI outlook to positive Asean Affairs Premium
• 2010 imports exceed Philippines target
• Singapore's manufacturing output rises
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• PTTAR and PTTCH merge
• THAI profits soar but fuel a worry
• Vietnam reviews religious policies
• Vietnamese FDI falls 32 percent
Asean Analysis    27   February 2011 Advertise Your Brand
• WEEKLY SUMMARY Sponsor Our Events
Asean Stock Watch    25  February 2011
• ASEAN Markets to Rebound
Global News Impacting Asia    17 November 2010
• Bank of America sees Asian inflation
• Lloyd’s increases insurance push in Malaysia
• Wells Fargo analyst on euro
• Obama’s visit to Asia

ASEAN NEWS UPDATES      Updated: 04 January 2011

• Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore
• Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline
• Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand