RATING AGENCIES

Moody’s upgraded its outlook for Indonesian sovereign credit rating to positive from stable on February 8th and affirmed the long-term foreign credit rating at Baa3. As the country’s vulnerability to external shocks declines; macroeconomic stability and fiscal discipline, coupled with ongoing reforms, suggest that policy effectiveness is improving. Standard & Poor’s credit rating for Indonesia stands at BB+ with a positive outlook. Fitch’s credit rating for Indonesia was last reported at BBB- with a positive outlook.

RATING

BBB-

OUTLOOK: POSITIVE

RATING

Baa3

OUTLOOK: POSITIVE

RATING

BBB-

OUTLOOK: STABLE

PROJECTIONS ON THE INDONESIAN ECONOMY

Indonesia’s economy is on the rise, helping the country take its rightful position as a major destination for foreign direct investment (FDI). Indonesia is entering a “sweet spot” as a convergence of its young, working population with that of relatively stable inflation and sustained economic growth which in turn is fuelling overall consumer spending. Finally, the country’s resilience during the global financial crisis illustrates the merits of its immense population and economic self-reliance, demonstrating how these factors buck the trend of most other G20 economies.

1

The world‘s largest archipelagic country

with approximately 17,000 islands, and occupies a strategic location along major sea-lanes between East- and West-Asia.

2

The world’s 4th most populous country

with a population just under 250 million which is just below the population of China, India and the US. It is home to a 135 million consumer class, a sign of a growing middle- and upper-class with high purchasing power.

3

The largest economy in Southeast Asia

and its only member of the G-20. Due to strong economic and demographic Indonesian potential, Standard Chartered projects Indonesia will be part of the G-7 by 2040. It is also predicted to be the 5th largest economy in the world by 2030.

4

Strong democracy

despite of its vast cultural diversity which empowers them with agility and flexibility to meet future.

National motto: “Unity in diversity”

5

245 national strategic infrastructure projects

covering 6 development regions, building new airports & seaports across the country as the gates for trade and tourism. The country is also improving electrical capacity with an additional 35.000 MW

6

10 “New Balis” plan

that aims to replicate the economic effects of tourism in Bali nationally, and set a target of welcoming 20 million foreign tourists by 2019.

7

High investment incentives

such as ease-of-doing business are set to attract more foreign direct investment.

8

Rich in natural resources

and ready to produce goods for global markets.

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