The ratings firm said Indonesia cheap moncler jackets had earned the upgrade through a combination of resilient economic growth, low government debt and prudent policy. Indonesia lost the coveted investment-grade status in 1997 during the Asian financial crisis. The upgrade comes at a time when some European countries are struggling with their own crisis and being downgraded to junk status.
"Indonesia's domestically oriented economy and success in delivering relatively strong economic growth without the creation of external imbalances, or a reliance on short-term external financing suggests economic-growth prospects should prove resilient to external shocks, as was the case in 2008," the ratings firm said.
Fitch now rates Indonesia's long-term foreign and local currency issuer default rating at triple-B-minus, the lowest investment-grade rating, with a stable outlook. Standard & Poor's and Moody's both rate Southeast Asia's biggest economy one notch below investment grade, but market participants and analysts expect them to follow suit next year.
Fitch said it expects Indonesia's economic growth to average more than 6% a year through 2013, despite the deteriorating global economic backdrop.
The vote of confidence is important for Indonesia—which is has the world's fourth largest population after China, India and the U.S.—as it will encourage much-needed investment and possibly lower the cost of raising money. Indonesia needs hundreds of billions of black jackets for men dollars in investment to build the country's industries and infrastructure and to provide jobs for its young populace of around 240 million people.
"An upgrade amid deteriorating global economic conditions shows declining investment risk, which will make [Indonesia] more attractive for capital inflows," said Hartadi Sarwono, a deputy governor at Indonesia's central bank.
Indonesia has a lighter debt burden that most countries and has shown that even during the economic turmoil of 2008-2009 it had the ability to grow while other countries struggled.
"We look a lot better than a lot of the Western European economies today," Indonesian Trade Minister Gita Wirjawan told The Wall Street Journal in an interview last week. "There ought to be a credit-spread reversal if anything."
Still, Fitch said Indonesia needs to resolve long-standing structural weaknesses such as overburdened infrastructure and corruption that hamper its business climate before expecting a further rating upgrade.
Indonesia is expected to take a big step toward improving its outdated infrastructure on Friday when Parliament is expected to pass a law on land acquisition. The new law will kick-start road, port and power-plant construction projects that are stuck as the land owners refuse to give up their land.Market participants expect Fitch's move to improve sentiment for the country's financial assets amid global uncertainties cheap moncler jackets for women .
