JAKARTA. Standard & Poor (S&P) is unlikely to upgrade the status of Indonesia to the level of ‘investment grade’. As reported by Bloomberg, Director Asia-Pacific Sovereign Rating S&P Kyran Curry, the high risks of private sector debts is the main reason for S&P to not recommend status upgrading for Indonesia. The main indicator is the increase in the ratio of non-performing loan (NPL). As of July 2016, the NPL ratio increased from 2.7% as per July 2015 to 3.2%. Head of Fiscal Policy Agency (BKF) at Ministry of Finance Suahasil Nazara said that the reason of S&P to not upgrade Indonesia’s status is unacceptable. “We have followed all of their suggestions”, he said.
S&P unlikely to revise Indonesia's status
JAKARTA. Standard & Poor (S&P) is unlikely to upgrade the status of Indonesia to the level of ‘investment grade’. As reported by Bloomberg, Director Asia-Pacific Sovereign Rating S&P Kyran Curry, the high risks of private sector debts is the main reason for S&P to not recommend status upgrading for Indonesia. The main indicator is the increase in the ratio of non-performing loan (NPL). As of July 2016, the NPL ratio increased from 2.7% as per July 2015 to 3.2%. Head of Fiscal Policy Agency (BKF) at Ministry of Finance Suahasil Nazara said that the reason of S&P to not upgrade Indonesia’s status is unacceptable. “We have followed all of their suggestions”, he said.