Indonesia credit rating upgraded by Moody's

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)
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)
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)

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

Indonesian gets 6 years for smuggling migrants to...

Mar 16, 2017

An Indonesian court has sentenced a people-smuggling kingpin to six years in jail for organizing a...

France pledges $2.6 billion for Indonesia as...

Mar 29, 2017

France has pledged $2.6 billion in investments for Indonesia and affirmed deepening ties with...

2 men in Indonesia's Aceh province face caning...

Apr 8, 2017

Two men in Indonesia's conservative Aceh province each face up to 100 strokes of the cane after...

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...

Suspected suicide bombs in Jakarta kills 3...

May 24, 2017

Two suspected suicide bombings near a bus terminal in Indonesia's capital Wednesday night killed...

News

Sign up now!