Fitch upgrades Indonesia

Fitch Ratings said it upgraded Indonesia's long-term foreign- and local-currency issuer default ratings to BBB from BBB-.

The outlook is stable.

The upgrades reflect Indonesia's resilience to external shocks, which steadily strengthened in the past few years as macroeconomic policies have consistently maintained stability, Fitch explained.

A more flexible exchange-rate policy since mid-2013 also helped foreign-reserve buffers swell to $126 billion as of November 2017, the agency said.

External challenges still remain, including potential emerging market pressure in the context of the U.S. Federal Reserve's policy normalization, Fitch said.

Indonesia's dependence on commodities remains relatively high and both its net and gross external debt remain elevated compared with BBB peers, the agency noted.

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