Bangkok--3 Dec--Standard & Poor's
SINGAPORE (Standard & Poor's) Dec. 3, 2015--Standard & Poor's Ratings Servicestoday assigned its 'BB+' long-term issue ratings to two series of notes thatthe Republic of Indonesia (BB+/Positive/B; axBBB+/axA-2) has issued under itsrecently upsized US$40 billion medium-term note program. The series are theUS$2.25 billion senior notes due Jan. 8, 2026, and US$1.25 billion seniornotes due Jan. 8, 2046.
The notes will constitute the direct, unconditional, unsubordinated, andunsecured obligations of Indonesia.
The ratings on Indonesia balance the country's low per capita income anddeveloping policy and institutional settings against the improved credibilityof its monetary policy, buoyant economic growth, and sound public finances.
The positive outlook indicates the possibility that we could raise our ratingson Indonesia over the next 12 months if the government achieves its statedobjective of improving the quality of expenditure. This would include allowingfuel pump prices to adjust more freely and efficiently allocating its public
investment budget.
We could revise the outlook to stable if the government's reform ambitionswane or macroeconomic imbalances rise.