JAKARTA. Japan Credit Rating (JCR), a credit rating agency, has upgraded Indonesia's debt rating, from "BBB" with a positive outlook to "BBB+" with a stable outlook.
Bhima Yudhistira, an economist from the Institute for Development of Economics and Finance (INDEF), believed that the upgrade will not have too much impact on foreign capital flows to Indonesia, since investors' expectations of the economic outlook this year are still overshadowed by the coronavirus outbreak and the Brexit.
In the capital market, the drop in the Jakarta Composite Index (JCI) at Friday (31/1) by 117 points or 1.94% to 5,940.05 also reflects the economic condition in Indonesia. The index reached its lowest level in the last 8 months.
"This shows that the attention of investors at this time will be more towards temporary issues that affect the placement of the portfolio, both in the capital market and bonds," explained Bhima. (AM/AR)