S&P Global Ratings views Indonesian corporate rating having a good prospect after general elections with a little risk of operation, but not the main catalyst for operations. “Election mostly neutral for corporate credit dynamic. Less event risk but not a major catalyst for operations,” said Xavier Jean, Senior Director Corporate Ratings at S&P last week in one seminar in Jakarta.
Jean believed President Joko Widodo’d second term would also provide a second wave economic orientation to the development of more passionate sustainable infrastructure projects, one heart of his re-election offering, is likely to encourage further loan growth to the strongest countries in the ASEAN.
As of his first term who starting in infrastructure projects worth Rp5,519 trillion (US$383.26 billion), ranging from toll roads to ports and power plants to airports, now infrastructure projects is still continuing.
Looking to the post-election outlook, he said that for the real estate sector, the prospect is a bit better, although it must require a little longer lag to restore investor confidence to invest after the election circle.
Meanwhile, the performance of State-Owned Enterprises (SOEs) is also slightly better. In 2018, a number of directors from SOEs, national and foreign private companies signed an investment and financing agreement for Infrastructure projects with a value of $6.65 billion.