Ratings agency S&P has lifted Indonesia’s credit rating on Friday, 31st May. The agency foresees strong prospects for Indonesia, Southeast Asia’s largest economy, after President Joko Widodo’s re-election.
Despite claims of widespread cheating and fraud by his rival Prabowo Subianto, who is currently pursuing legal processes through the constitutional court, S&P claims that the case will not affect Jokowi’s second term. His first term saw a boost in multi-billion-dollar infrastructure projects, particularly Jakarta’s first mass-rapid-transit system. A stronger credit rating implies lower international borrowing costs for a country.
“We raised the ratings to reflect Indonesia’s strong economic growth prospects and supportive policy dynamics, which we expect to remain following the re-election of President Joko Widodo recently,” a spokesman for S&P remarked.
S&P had raised Indonesia’s rating from BBB- to BBB, citing the government’s efforts to keep inflation and debt in control.