$10 billion in foreign direct investment after investment-grade status
Investment grade status | The Invest Coordinating Board (BKPM) estimates Indonesia may see an additional $10 billion in foreign direct investment over the next two years after the country secured investment-grade status.
The outlook for Indonesia’s sovereign bonds was lifted by global rating agency S&P’s last week, allowing the country to secure the coveted investment grade status from all three major debt rating agencies for the first time since 1997.
“The investment grade potentially attract $5 billion to $10 billion, or Rp 65 trillion to Rp 130 trillion, in the next year or two. It certainly improves our investment climate,” BKPM chairman Thomas Trikasih Lembong said on Tuesday (24/05).
Thomas said although the rating was for Indonesia bonds – and directly impacts appetite for the country’s debt papers or stocks – it also reflects on the country’s overall economic strength and how safe it is for investment.
#Indonesia attracted Rp 396 trillion in foreign direct investment last year, up 8.3 percent from a year earlier.