Moody’s: Indonesian banking system to positive

Moody's Investors Service said it changed the outlook on Indonesia’s banking system to positive from stable, reflecting its view that banks will see improvements in their operating environment, asset quality, as well as the capacity by the government to extend support when necessary.

"Indonesian banks will benefit from an improving operating environment in the coming 12-18 months, as economic growth picks up due to supporting macroeconomic policies and a stronger market for the country's key commodities," Moody's vice president and senior credit officer Srikanth Vadlamani said in a news release.

"Our baseline scenario assumes real GDP growth in Indonesia of 5.2% in 2017 and 5.3% in 2018, compared to 5.0% in 2016."

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