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| Indonesian banking |
"Of course we welcome this announcement. With the increase of Indonesia's rating from BB + to BBB-by Fitch rating, Indonesian banks would obtain overseas loans easier with cheaper rates," said Sigit.
He explained, the budget cost or operational cost will obviously go down with the cheaper loan rates.
"In addition, it also allows the banking industry to issue more corporate bonds in the future inline with the increased market confidence and overseas confidence," said Sigit.
Furthermore, Sigit explained, Indonesian banks will be easier to borrow foreign currency from abroad with this new investment grade status, making it easier to find the source of foreign currency liquidity whenever there is pressure or foreign currency liquidity problems.
Source: Analisa
