Indonesia central bank gov says government has to explain some fiscal concerns
[JAKARTA] Indonesia's central bank governor said the government has to address some fiscal concerns which have been a key aspect in constraining a rating agency from upgrading the country's credit rating to investment grade.
Governor Agus Martowardojo said the government has to explain what it will do if state revenue falls below expectations, "whether the government is going to cut spending or increase bonds issuance", because it was one of the concerns.
He also said the government needs to set up a mechanism to determine retail fuel prices after it removed subsidies at the start of 2015.
Mr Martowardojo said Indonesia's overall economic condition has improved, but didn't say if he thinks Standard & Poor's should upgrade Indonesia's credit rating to investment grade, like what Moody's and Fitch did.
REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
Biden now calls ally Japan ‘xenophobic’ along with China, Russia
Japanese companies struggle with yen’s continued weakness
Australia’s March goods trade surplus narrows to more than 3-year low
Hong Kong holds rate as Fed signals inflation concerns
Australian business strength is shocking even its biggest lender
South Korea’s factory activity shrinks in April, but optimism about outlook ticks up