Impact of S&P downgrade on Indonesia temporary: central bank deputy governor

BY    2013-05-05 10:19:29

  JAKARTA, May 3 (Xinhua) -- Indonesian Central Bank deputy governor for monetary operation Perry Warjiyo said on Friday that the impact of the Standard & Poor's (S&P) downgrade on Indonesia's credit rating outlook is going to be temporary.

  Perry made the statement after the S&P revised down its outlook on Indonesia's BB+ rating to stable from positive.

  Although the market responded it negatively, the deputy governor said that it would not impact on the country's economy in the long term.

  "The market responded on the sentiment. The response of the market is only temporary. Now it is (back) to stable," Perry said at the central bank.

  "Indonesia is still attractive, our macro-economic fundamentals are very sound," he said.

  The Southeast Asia's largest economy is supported by a huge domestic consumption, where middle class of the country's 238 million population is growing amid growing wealth that pushes buying power, said Perry.

  Besides, two other international credit rating agencies Moody's and Fitch's have upgraded Indonesia's credit rating to the investment grade recently which helped lure foreign funds into the country.

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