REPUBLIKA.CO.ID, JAKARTA - Standard&Poor (S&P) affirms Indonesian sovereign credit rating to BB plus -one rank below investment grade- for long term and B for short term due to trade deficit, increasing private sector debts and fuel subsidy that continues to burden national fiscal. S&P also revises Indonesian outlook from positive to stable.

Yet, Deputy Governor of Bank Indonesia, Halim Alamsyah believes that S&P rating will not affect Indonesian economic. “S&P has its own opinion regarding to Indonesia, while the central bank also believes that Indonesian economic growth remains well preserve. Our fundamentals have not changed much, as well as market conditions," he said on Saturday.

Alamsyah predicts BI very optimistic that Indonesian economic will be above six percent this year. It will encourage credit growth from 22 to 23 percent. BI think that no need to correct the prediction over investment, especially foreign investment. Foreign investment is considered normal despite the decrease. 

While Deputy Governor of BI Perry Warjiyo rejected the accusation that the S&P rating and outlook was related to the presidential election in 2014. “S&P doesn't believe that Indonesia will increase its rating to investment grade in next 12 months. But I'm sure that Indonesia has better democratic stage this year like before,” he said. 

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