Moody's: Indonesia compromise

Moody's Investors Service said the appointment of Agus Martowardojo as Indonesia's new finance minister recently - replacing Sri Mulyani Indrawati - could re-invigorate the improving trend evident in Indonesia's sovereign credit profile.

The key elements of likely credit support would derive from various considerations, including those of a political nature and those related to the actual career and experience of Martowardojo, Moody's said.

Politically, the appointment may represent a stable compromise between the government and its main coalition partners, the agency said, and whose political relationship has proven more contentious than expected.

With this appointment, key fiscal policies and budget management goals are not expected to shift significantly from the appropriate positions set by the outgoing finance minister, Moody's added.

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