JAKARTA, Feb. 9 (Xinhua) -- International credible rating agency Moody's Investors Services (Moody's) has upgraded its outlook on Indonesia's sovereign credit rating from stable to positive, affirmed Indonesia's sovereign bond to Baa3 (investment grade) rating.
The upgrade was based on diminishing vulnerability to respond external shocks due to government's sound policy implementations and improving performance in government's institutions agencies through effective policies.
In its statement released on Wednesday, Moody's said that the diminishing vulnerability over external impacts was resulted from Indonesian government's effective moves in stabilizing macroeconomic elements, fuel subsidy reform and import subsidies for domestic manufactures.
All of those effective moves were coupled with sound works of government's related institutions that properly addressing sustainable drive in fiscal and economic policies.
Should those improvements continue, Indonesia may see further rating upgrade in the future, the statement said.
Hailing the latest international recognition on the nation's economic performance, Indonesian central bank (BI) Governor Agus Martowardojo said that Indonesia would continue efforts in preserving its discipline to manage macroeconomic.
"To do so, we would further strengthen coordination with government," Agus said on Thursday.
Moody's previously retain its outlook on Indonesian bond on Baa3/stable rating on January last year.
