Sunday, December 18, 2011

Europe Debt Crisis but Fitch rating raised for Indonesia Debt


Fitch Ratings raised the long-term foreign and local currency rating to BBB- from BB+ for Indonesia sovereign debt on Thursday Dec-15, 2011. Some considered factors are: better economic performance, strong external liquidity, low public debt ratio and continue lower, and carefully planned macro economy policy.

Infrastructure problem is still one of the biggest challenge, Indonesian parliament has approved a bill to empower government to take over lands and properties for infrastructure development with appropriate compensation for owners. 

As the biggest economy in ASEAN and member of G-20, population of Indonesia according to the 2010 national census is 237.6 million, 58% of the population lives on Java and become the world's most populous island, this is a demographic problem and need to be solved. Infrastructure development will never be enought for Java. Especialy for Jakarta with about 10 million population or about 4% of total Indonesia population. Jakarta has 661 square kilometres area, with population density 15 thousand people per square kilometers.

While European leaders struggled to solve the region’s debt crisis and make average year to date growth for G-20 stock index lower to -15%, only Wall Street and Jakarta year to date stock index are in green as per Friday Dec 16, 2011.


G-20 COUNTRIES STOCK INDEX YEAR TO DATE DEC-16, 2011
NO
G-20 MEMBER
INDEX
PRICE
GROWTH
Last day of Dec 2010
Fri Dec 16, 11
%
1
 European Union
EURO STOXX 50
2,792.82
2,202.72
-21.1
2
 United States
DOW
11,577.51
11,866.39
2.5
3
 China
SSEC
2,808.80
2,224.84
-20.8
4
 Japan
N225
10,228.92
8,401.72
-17.9
5
 Germany
DAX
6,914.19
5,701.78
-17.5
6
 France
CAC 40
3,804.78
2,972.30
-21.9
7
 United Kingdom
FTSE 100
5,971.00
5,387.34
-9.8
8
 Brazil
BOVESPA
69,304.81
56,096.93
-19.1
9
 Italy
FTSE Italia All-Share
20,935.64
15,287.91
-27.0
10
 Canada
S&P/TSX Composite
13,443.22
11,635.40
-13.4
11
 India
BSE 30
20,025.42
15,491.35
-22.6
12
 Russia
RTSI
1,770.28
1,373.73
-22.4
13
 Australia
AOI
4,846.90
4,218.80
-13.0
14
 Mexico
IPC
38,550.79
36,054.60
-6.5
15
 South Korea
Seoul Composite
2,051.00
1,839.96
-10.3
16
 Turkey
Istanbul SE National 100
66,004.48
51,665.78
-21.7
17
 Indonesia
IHSG
3,703.51
3,768.35
1.8
18
 Saudi Arabia
Tadawul All Share
6,620.75
6,253.66
-5.5
19
 Argentina
MerVal
3,523.59
2,433.40
-30.9
20
 South Africa
JSE All Share
32,118.89
32,006.70
-0.3
Sorted by GDP biggest
Average percentage
-15

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