REPUBLIKA.CO.ID, JAKARTA -- Bambang Brodjonegoro, Minister of National Development Planning/Head of National Development Planning Board (Beppenas), stated the investment grade status provided by the international rating agency Standard and Poor's (S&P) to Indonesia has made its securities more competitive.

"Our expectation is that with the Standard and Poor's investment grade, the cost of fund will decline, making our commercial papers competitive and most importantly, the interest costs are down," Brodjonegoro said at Pullman Hotel here, Monday.

He noted the raising of Indonesia's commercial papers to the investment grade of the BBB- level opens opportunities for Indonesia to seek loans from the market.

"In the past, many institutions that had money wanted to buy securities only if the investment grade had been secured from the three rating agencies. We have two of the three, the cost of which is equivalent to investment grade," remarked Brodjonegoro.

Previously, the international rating agency Standard and Poor's, Friday (May 19), raised the rating of Indonesia's commercial papers to the investment grade with the BBB- level from the previous BB+.

This investment grade status demonstrates the high trust of the international community in the Indonesian economy, thereby reducing the cost of government debts, making it more efficient and providing greater fiscal space.

S&P raised Indonesia's rating keeping in mind several indicators of Indonesia's economy. The good State Budget Management (APBN) was also a factor leading to the rise in Indonesia's rank.

Another rating agency Fitch has given BBB- (investment grade) rating to Indonesia on December 21, 2016. Moody's provided Baa3 rating (investment grade) to Indonesia on February 8, 2017.

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