Indonesia’s 10-year government bond yields are currently around 6.89%, or the highest among Asian nations. Indonesia indeed saw its credit ratings being upgraded to investment grade status by Standard & Poor’s (S&P) in May 2017 (unlocking a potentially huge amount of capital inflows) but compared to many of its regional peers Indonesia’s ratings remain less competitive. Indonesia’s inflation rate has been rising since the year-start due to administered price adjustments (higher electricity tariffs for specific households as the government is eager to reduce costly energy subsidies).

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