BANDUNG, - Coordinating Minister for the Ministry of Marine Affairs, Luhut Binsar Pandjaitan, said that the rating increase given by Japan's rating agency from BBB minus to BBB proves that the Indonesian economy is getting better.
Japan Credit Rating Agency, Ltd. (JCR) noted that since the reign of Joko Widodo in 2014, there has been a structural reform in Indonesia that is to create sustainable growth and not depend on the natural resources sector. In addition, the improvement of investment climate in Indonesia is marked by the increase of private investment from domestic and foreign. Infrastructure development is also very massive due to high commitment from the government.
"The JCR ratings agency raising the Sovereign Credit Rating of the Republic of Indonesia from BBB minus to BBB means that the current rate of interest for interest is lower, indicating that our economy is improving well and this condition should be maintained," Luhut said in his official statement. Bandung, Saturday (10/2/2018)
According to Luhut, President Jokowi is committed to building infrastructure in Indonesia. There has never been a president in Indonesia who in a year four times came to Papua to the extent to ensure construction goes there.
"When I was a Coordinating Minister for Political and Security Affairs I invited the Ambassadors, the Attorney General of Australia to see first hand, directly see the situation in Papua, so before the act the students should know first, what you are talking about or see directly, "said Luhut
Government-owned funds are currently only enough to finance less than 30% of development in Indonesia therefore the government is currently looking for ways to keep building on government funds as little as possible.
"We have made other funding outside the state budget, such as Blended Finance, which involves the use of development financing from public sources or philanthropy to support development.I am presenting this in Davos at the _World Economic Forum_ event and they are thumbs up because Indonesia is considered creative in looking for funding sources, "he explained.
Furthermore Coordinating Minister Luhut revealed that there are still some that can be a source of economic potential of Indonesia, namely the vastness of the sea and the length of the coastline owned by Indonesia. The length of the coastline reaches 99,093 kilometers and its economic potential which can reach 1.2 trillion USD per year has not been fully utilized.