Europe Debt Crisis but Fitch rating raised for Indonesia Debt

Fitch Ratings raised the long-term foreign and local currency rating to BBB- from BB+ for Indonesia sovereign debt on Thursday Dec-15, 2011. Some considered factors are: better economic performance, strong external liquidity, low public debt ratio and continue lower, and carefully planned macro economy policy.

Infrastructure problem is still one of the biggest challenge, Indonesian parliament has approved a bill to empower government to take over lands and properties for infrastructure development with appropriate compensation for owners. 

As the biggest economy in ASEAN and member of G-20, population of Indonesia according to the 2010 national census is 237.6 million, 58% of the population lives on Java and become the world's most populous island, this is a demographic problem and need to be solved. Infrastructure development will never be enought for Java. Especialy for Jakarta with about 10 million population or about 4% of total Indonesia population. Jakarta has 661 square kilometres area, with population density 15 thousand people per square kilometers.

While European leaders struggled to solve the region’s debt crisis and make average year to date growth for G-20 stock index lower to -15%, only Wall Street and Jakarta year to date stock index are in green as per Friday Dec 16, 2011.

G-20 COUNTRIES STOCK INDEX YEAR TO DATE DEC-16, 2011
NO	G-20 MEMBER	INDEX	PRICE		GROWTH
			Last day of Dec 2010	Fri Dec 16, 11	%
1	European Union	EURO STOXX 50	2,792.82	2,202.72	-21.1
2	United States	DOW	11,577.51	11,866.39	2.5
3	China	SSEC	2,808.80	2,224.84	-20.8
4	Japan	N225	10,228.92	8,401.72	-17.9
5	Germany	DAX	6,914.19	5,701.78	-17.5
6	France	CAC 40	3,804.78	2,972.30	-21.9
7	United Kingdom	FTSE 100	5,971.00	5,387.34	-9.8
8	Brazil	BOVESPA	69,304.81	56,096.93	-19.1
9	Italy	FTSE Italia All-Share	20,935.64	15,287.91	-27.0
10	Canada	S&P/TSX Composite	13,443.22	11,635.40	-13.4
11	India	BSE 30	20,025.42	15,491.35	-22.6
12	Russia	RTSI	1,770.28	1,373.73	-22.4
13	Australia	AOI	4,846.90	4,218.80	-13.0
14	Mexico	IPC	38,550.79	36,054.60	-6.5
15	South Korea	Seoul Composite	2,051.00	1,839.96	-10.3
16	Turkey	Istanbul SE National 100	66,004.48	51,665.78	-21.7
17	Indonesia	IHSG	3,703.51	3,768.35	1.8
18	Saudi Arabia	Tadawul All Share	6,620.75	6,253.66	-5.5
19	Argentina	MerVal	3,523.59	2,433.40	-30.9
20	South Africa	JSE All Share	32,118.89	32,006.70	-0.3
Sorted by GDP biggest				Average percentage	-15