S&P says outlook for Indonesia mining sector stable

14-Apr-2012 Intellasia | Reuters | 7:01 AM Print This Post

The outlook for Indonesia’s mining sector remains stable despite stringent regulations that are likely to become more onerous in future, driving up the cost of business, ratings agency Standard & Poor’s said on Thursday.

“The high economic importance of the mining sector to Indonesia’s central and regional governments provides a strong incentive for the government to adopt reasonable regulations that do not materially dent the sector’s performance or its attractiveness to investors,” said Standard & Poor’s credit analyst Xavier Jean.

“Standard & Poor’s Ratings Services believes that while mining regulations will become more onerous in Indonesia, the government is unlikely to carry out some of its more extreme regulations,” the agency said in a press release.

S&P is likely to release a report soon on the Indonesian government’s sovereign rating. Fitch and Moody’s agency upgraded Southeast Asia’s largest economy to investment status in recent months.



Category: Indonesia

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