On the 15th Dec, Indonesia regained investment grade rating for its sovereign debt at Fitch Ratings after 14 years, as Southeast Asia’s largest economy withstands faltering global growth and contains borrowings. 

The country’s long-term foreign and local currency debt was raised to BBB- from BB+, Fitch said in a statement yesterday. The outlook on both ratings is stable. Indonesia lost the investment grade rating in December 1997, during the Asian financial crisis. The rating puts the nation on the same level as India. 

Indonesia did learn a hard lesson during the 1997-1998 financial crisis, when GDP shrank 13 per cent in only one year, capital flooded out and the rupiah collapsed. Now, along with most of its south-east Asian neighbours, it has built up “massive reserves” and is in healthy shape. On the other hand, as the world is worrying about Euro debt and US debt issues, it is worth noting that Indonesia has low debt, which is only 26 per cent of GDP.