Aditya Suharmoko, The Jakarta Post, Jakarta | Tue,  07/13/2010 7:05 PM | 
Business

The Japan Credit Rating Agency has upgraded Indonesia's credit  rating to 
investment grade, citing the nation's economic prospects and  prudent fiscal 
management, the central bank said in a statement Tuesday.
Indonesia's  foreign currency long-term senior debt has been raised from BB+ to 
BBB-  and the local currency long-term senior debt rating rose from BBB- to  
BBB, said Bank Indonesia (BI). The outlook is stable. 

The agency  cited five factors for the upgrade: Improving political and social  
stability; encouraging economic prospects; the declining public debt  burden; 
higher resilience in external factors due to rising foreign  exchange reserves; 
and the government's efforts to improve  infrastructure. 

"The investment grade rating will improve the  confidence foreign investors have 
in Indonesia. This step is expected to  be followed by other international 
rating agencies," said BI Deputy  Governor Hartadi A. Sarwono.