Indonesia credit rating upgraded by Moody's

Cars line up in a traffic congestion next to Light Rapid Transit (LRT) in construction site, right, in Jakarta, Indonesia April 13, 2018. Moody's upgraded Indonesia's credit rating on Friday due to increased confidence the government will maintain its recent track record of responsibly managing the national budget and interest rate policy. (AP Photo/Achmad Ibrahim)
Indonesian laborers work at Light Rail Transit (LRT) construction site in Jakarta, Indonesia, Friday, April 13, 2018. Moody's upgraded Indonesia's credit rating on Friday due to increased confidence the government will maintain its recent track record of responsibly managing the national budget and interest rate policy. (AP Photo/Achmad Ibrahim)
Indonesian laborers work at Light Rail Transit (LRT) construction site in Jakarta,Indonesia, Friday, April 13, 2018. Moody's upgraded Indonesia's credit rating on Friday due to increased confidence the government will maintain its recent track record of responsibly managing the national budget and interest rate policy. (AP Photo/Achmad Ibrahim)
An Indonesian laborer works at Light Rail Transit (LRT) construction site in Jakarta,Indonesia, Friday, April 13, 2018. Moody's upgraded Indonesia's credit rating on Friday due to increased confidence the government will maintain its recent track record of responsibly managing the national budget and interest rate policy. (AP Photo/Achmad Ibrahim)

JAKARTA, Indonesia — Moody's upgraded Indonesia's credit rating on Friday due to increased confidence the government will maintain its recent track record of responsibly managing the national budget and interest rate policy.

In a boost for President Joko "Jokowi" Widodo's ambitious plans to carpet Indonesia with modern roads, ports, rail and airports, Moody's Investors Service said state-owned enterprises taking on more debt to fund those projects does not pose a "significant risk."

The upgrade raised Indonesia's sovereign credit rating to Baa2 from the lowest investment grade rating.

Citing improved economic management and the central bank's focus on controlling inflation, Moody's said "these policies and larger financial reserves are strengthening Indonesia's capacity to respond to shocks."

A higher credit rating can reduce the cost of borrowing overseas and encourage foreign investment.

Indonesia, with a population of more than 260 million, is Southeast Asia's largest economy but still struggles with high levels of childhood malnutrition, low educational standards and widespread corruption.

You may also interested in

Nervous about China, Southeast Asia gets Trump's...

Apr 21, 2017

Southeast Asia, a focus of past U.S. presidents, has been a blip thus far for the Trump...

The Latest: Crowds mass at jail where Jakarta...

May 9, 2017

Hundreds of apparent supporters of Basuki "Ahok" Tjahaja Purnama have massed outside the Jakarta...

Indonesia police arrest dozens in raid on Jakarta...

May 22, 2017

Indonesian police say they detained dozens of men including several foreigners in a raid on a gay...

2 men in Indonesia caned dozens of times for gay...

May 23, 2017

Two men in Indonesia's Aceh province have been publicly caned dozens of times for consensual gay...

Indonesia lifts threat to ban encrypted app...

Aug 1, 2017

Indonesia's information technology minister says the government will allow the encrypted messaging...

News

Sign up now!