Getting Used to lagging Behind

Indonesia has missed an opportunity to graduate this month. Last Wednesday, Standard & Poor's (S&P) global ratings confirmed that Indonesia's rating will remain in non-investment grade territory. In S&P language, that means BB+, just one notch short from getting out of the junk category. No offence taken, in financial market lingo, non-investment grade bond is simply a junk bond.

Two weeks ago, the hope of passing that critical one notch emerged when an S&P entourage came to Jakarta for an evaluation, and even paid a short visit to President Joko Widodo. The government's public relation machinery wasted no time in flooding the media with positive signals. Officials boasted that Indonesia deserves to get an investment grade rating.