Wednesday, 22 May 2019 | 06:19 WIB

Fitch Expects Joko Widodo to Continue Reforms on Regulation and Land Provision

Fitch Expects Joko Widodo to Continue Reforms on Regulation and Land Provision (balkaneu)

JAKARTA, NETRALNEWS.COM - The interim results of the 2019 Prsidential Election quick counts shows presidential candidate pair number 01 Joko Widodo leading the vote count. If there is no change in the decision of the Indonesia General Elections Commission (KPU) in May, Jokowi will be re-elected as president.

This result received a response from an international institution, Fitch Ratings. Director of Fitch Ratings, Thomas Rookmaaker, noted the results of quick count would make the investments go well. In fact, he said, a wave of economic reform will occur.

"There will be a continuation of current economic policies, with a focus on macro stability, infrastructure spending, and efforts to increase the government's tax revenue ratio," Thomas said in an official statement on Friday (4/19/2019).

From a ranking perspective, Thomas views, the policy focus on macro stability is very relevant to Indonesia's economic conditions. Indeed, more policies related to stability are under the auspices of the central bank, Bank Indonesia.

"But the government has played a supporting role over the past few years through wise fiscal management and policy coordination," Thomas continued.

It's just that, Thomas views, there is still uncertainty regarding the reform agenda in the next government. Fitch sees that structural reforms should continue to boost investment in Indonesia.

"Structural reforms that include improving the quality of education, more flexible labor laws, and facilitating land acquisition," he continued.

Meanwhile, Fitch appreciates the success of the government in coordinating policies, including with Bank Indonesia so far. For the macroeconomic stability achieved, Fitch affirmed Indonesia's sovereign credit rating on the BBB level with a stable Investment Grade outlook in mid-March.