JAKARTA, April 12 (Reuters) – The outlook for Indonesia’s
mining sector remains stable despite stringent regulations that
are likely to become more onerous in future, driving up the cost
of business, ratings agency Standard & Poor’s said on Thursday.
“The high economic importance of the mining sector to
Indonesia’s central and regional governments provides a strong
incentive for the government to adopt reasonable regulations
that do not materially dent the sector’s performance or its
attractiveness to investors,” said Standard & Poor’s credit
analyst Xavier Jean.
“Standard & Poor’s Ratings Services believes that while
mining regulations will become more onerous in Indonesia, the
government is unlikely to implement some of its more extreme
regulations,” the agency said in a press release.
S&P; is likely to release a report soon on the Indonesian
government’s sovereign rating. Fitch and Moody’s agency upgraded
Southeast Asia’s largest economy to investment status in recent
months.
