Indonesia Sailing Toward Upgrade as Last Major Asian Junk Debt
- Government officials have signaled they expect S&P to upgrade
- Indonesia is Asia’s biggest issuer of dollar bonds since 2011
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Indonesia’s status as Asia’s last major economy without a full-investment grade may be near an end, boosting the appeal of the region just as other emerging markets such as Brazil and Poland suffer downgrades.
State-Owned Enterprises Minister Rini Soemarno said in Jakarta on Wednesday she expects an S&P Global Ratings upgrade in June, after the finance minister said May 11 the firm’s officials were impressed during a visit. Indonesia’s international bonds returned 10.1 percent this year, while its domestic bonds advanced 10 percent, both the best in emerging Asia, JPMorgan Chase & Co. indexes show. The cost to protect sovereign debt against non-payment dropped the most in Asia after Vietnam, sliding 42 basis points to 193 basis points.