OECD UPGRADES RI'S CRC TO LEVEL 4

Jakarta, Apr 8 (ANTARA) - The Organization for Economic Cooperation and Development (OECD) has upgraded Indonesia's country risk classification (CRC) to level 4 from level 5 since April 2.

The level 4 suggested that Indonesia was now on par with Egypt, Uruguay and the Philippines, Deputy Bank Indonesia Governor Hartadi A. Sarwono said in a press statement on Thursday.

He said Indonesia's favourable macro economic indicators were the main factor upgrading the CRC.

Indonesia was one of the countries which managed to weather the global economic crisis and was among the few countries which recorded positive growth last year, he said.

The improving macro economic performance and economic stability resulted from the combination of forward-looking economic policy, ongoing structural reforms and good debt management, he said.

"Indeed, it is time for Indonesia's CRC to increase. The upgraded CRC Indonesia has sought since the past few years will have an impact on the declining cost of fund for export credits received by the government, particularly a significant decline in insurance premium," he said.

The government's export credits accounted for 10.5 percent of its total foreign debts as per December 2009, he said.

Among the 161 OECD member states, only Indonesia had its CRC upgraded at the OECD meeting held in early April, he said.

The upgraded CRC would also help improve Indonesia's bargaining position in negotiations with donor countries on foreign loans, he said.