Moody's: Robust framework needed for Indonesia

Moody's Investors Service said it said that Indonesia's Ba3 sovereign credit rating and stable outlook remain appropriate - even though pressures have risen - as the country's underlying credit fundamentals are not likely to erode significantly and policy responses to the global financial crisis have been adequately constructive so far.

This conclusion is underpinned by Moody's assessment of the country's external vulnerability and liquidity management coupled with the ability of the authorities to maintain fiscal restraint, Moody's said.

However, it seems increasingly urgent that Indonesia requires a crisis management framework more robust than what it has now, Moody's said. Without one, a prolonged global financial crisis could erode its sovereign credit quality more than is currently anticipated, the agency added.

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