Coordinating Minister Luhut: Indonesia's Investment Rating Makes Other Countries Downgrade

Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan. (Photo: Doc. Antara)

JAKARTA - The Coordinating Minister for Maritime Affairs and Investment (Menko Marves) Luhut Binsar Pandjaitan assessed that the “investment grade” rating of a number of global rating agencies to Indonesia indicates the world's trust in Indonesia's credibility as an investment destination.

According to Luhut, Indonesia's achievements in the midst of many countries that have actually downgraded their rank are quite encouraging.

"Indonesia's rating is stable in the midst of a crisis that has caused downgrades in many countries. This means that foreign countries still see Indonesia as a credible country for investment," he said at the Indonesia Investment Forum (IIF) 2021, which was held by the Indonesian Embassy in London online, as quoted by Antara. from Antara, Thursday 27 May.

This year, the rating agency still maintains its rating along with the prospects for Indonesia's foreign debt. S&P maintains the BBB rating with a negative outlook for Indonesia's sovereign credit rating.

Meanwhile, Fitch has not made any changes to the BBB rating with a stable outlook for Indonesia and Moody's has not changed its Baa2 rating along with a stable outlook for Indonesia.

The investment grade rating is considered to be able to pave the way for the inflow of foreign funds which can later become additional new sources of funding for Indonesia's economic development.

"We see there are Fitch, S&P, Moody's, it still gives (the title) stable even though they have downgraded many countries, for example Italy, Mexico, South Africa, it has been downgraded by Fitch and S&P," added Luhut.