BKPM RI: SOUND ECONOMY

Indonesia is an emerging global powerhouse in Asia. With the GDP expected to reach US$ 1 trillion in 2012, Indonesia is the largest economy in Southeast Asia. Much less affected by the global financial crisis compared to its neighboring countries, Indonesias economy grew by 5.7% in 2013, making The Worlds Most Stable Economy in the Last Five Years according to The Economist Magazine.

Indonesia grew by 6.2% in 2012 and in 2014, stronger economic growth is expected around the lower end of the 5.8-6.2% range. Future economic expansion is expected to include more inclusive growth as nominal per-capita GDP is expected to quadruple by 2020, according to a Standard Chartered report. A large part of our economic success is a result of growing

middle class and stable economic

growth. Indonesia is in list of MINT economies

(Mexico, Indonesia, Nigeria and Turkey), namely those that

were the most attractive to long-term investors due to their favorable demographic profiles. Indonesias debt to GDP ratio has steadily declined from 83% in 2001 to be less than 26% by the end of 2013, the lowest among ASEAN countries, aside from Singapore, which has no government debt. As a result, the Republic continued to receive good reviews. The rating reflects Indonesias resilience to the global financial crisis, improving government and external credit-metrics, and an ability to manage domestic political challenges to the reform agenda. Fitch Ratings (November 15, 2013): affirmed Indonesia's sovereign credit rating at BBB- level with stable outlook. Rating and Investment Information, Inc (October 11, 2013): affirmed Sovereign Credit Rating of the Republic of Indonesia at BBB-/stable outlook. Japan Credit Rating Agency, Ltd (July 22, 2013): affirmed Indonesias foreign currency long -term senior debt at BBB- with stable outlook.

S&P (May 2, 2013): affirmed Indonesias sovereign credit rating, at BB+ level for long-term.

 Moodys Investors Service (January 18, 2012): upgraded Republic of Indonesias foreign and local -currency bond ratings to Baa3 with stable outlook.