Indonesia: Job opportunities on horizon as investment grade rating spurs capital inflows

He said larger money circulation would increase the regional economies and boost peoples' buying power.

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Indonesian President Joko Widodo Reuters

The Indonesian President Joko Widodo believes that investment grade rating, awarded by international rating agencies boosting investment as well as capital inflows, could open up employment opportunities for the locals.

He said the ratings could create inflows of money, capital as well as investments where the capital inflow would not only stop at portfolio or shares in the stock market but it would also trickle down to the real sector.

In an interview with Antara News, Jokowi said the inflow of capital and investment money circulation in regions would be greater, thus allowing people to enjoy positive aspects, job opportunities and bigger money circulation with an improvement in welfare.

He said the larger money circulation would increase the regional economies, where the combination of both the bigger money and job opportunities would boost peoples' buying power, which will inturn increase the buying power for local commodities and ultimatley helping farmers and fishermen to sell their produce at a better price.

"The chain effect will be as such because people often ask about the connection between investment and poverty and that is the connection as investments will open more jobs and increase money in circulation," he said, as reported

Jokowi said the government would also push the flow to the real sector, where factories, industrial zones, and infrastructure would be built, opening up as much employment opportunities to the people. He said the investment grade ratings reflected confidence on Indonesia in an international sphere especially in the ease of investing in Indonesia.

"It is important for us to continue to reform -- simplifying licensing procedures, provide more infrastructure -- which would determine our competitiveness, and overcome high costs at seaports, airports, and roads," he said.

The president also said he was grateful to have received investment grade ratings from various international agencies, saying: "After Fitch Rating, there is Moody's, S&P, and then UNCTAD which had increased its rating on Indonesia from eighth to fourth after United States, China, and India."

Indonesia ranked fourth as a prospective investment destination 2017-2017 by the United Nations Conference on Trade and Development, bumping up by four positions after ranking eighth last year.