Thursday, July 16, 2009

Jakarta bombings















- Indonesian Rupiah Eases After Third Blast -Traders

- Indonesia c.bank says to maintain market stability

- Blasts Won't Change Indonesia's Credit Fundamentals

- S&P: Indonesia's Econ, Political Setting Still Positive



Indonesian rupiah eases after third blast -traders

SINGAPORE, July 17 (Reuters) - The Indonesian rupiah
eased on Friday following a third explosion in Jakarta that left two people dead, traders said.

The rupiah weakened past the 10,200 per-dollar level from 10,150 after the latest explosion, which followed two separated bomb blasts earlier that killed six people. [ID:nJKB001280]



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Indonesia c.bank says to maintain market stability

JAKARTA, July 17 (Reuters) - Indonesia's central bank will
maintain stability in the foreign exchange market, deputy
governor Hartadi Sarwono said on Friday, when asked about its
reaction to deadly Jakarta hotel bomb blasts earlier in the day.

"BI will continue to maintain stability in the market, whatever
happens. This is necessary," Sarwono told Reuters in a mobile
telephone text message, referring to Bank Indonesia (BI).

Bomb blasts at two hotels in Jakarta's business district on
Friday morning killed 9 people and injured 42, an Indonesian
police official said. (Reporting by Dicky Kristanto, writing Gde
Anugrah Arka and ; Editing by Sara Webb)

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Blasts Won't Change Indonesia's Credit Fundamentals

SINGAPORE, July 17 (Dow Jones)--The deadly explosions in
Indonesia's capital Friday won't change the country's credit
fundamentals, said James McCormack, head of Asian sovereign
ratings at Fitch.

'I don't think that really changes anything. These kinds of
incidents can and have happened anywhere so there's nothing
unique about Jakarta or Indonesia,' McCormack said in a
telephone interview. 'It's not going to change our view on
credit fundamentals or political stability or any of those
issues,' he said.

At least eight people have been killed in explosions at luxury
hotels in Jakarta's business district.

'Obviously we'll watch and see what happens but as far as we're
concerned it's an isolated incident,' McCormack said.

Fitch rates Indonesia two notches below investment grade at BB.
Standard & Poor's Ratings Services rates the sovereign BB- while
Moody's Investors Service has a ranking of Ba3 - both three
notches below investment grade.

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S&P: Indonesia's Econ, Political Setting Still Positive

SINGAPORE, July 17 (Dow Jones)--The deadly explosions in
Indonesia's capital Friday are unlikely to alter the country's
positive macroeconomic situation, said a credit analyst at
Standard & Poor's Ratings Services.

"Fundamentally, the macroeconomic and political setting remains
positive, and a bombing like this should not detract from that,
nor should it be viewed as an indication of general
deterioration of security," Agost Benard, S&P's primary analyst
for Indonesia, told Dow Jones Newswires.

At least nine people were killed and 41 injured, many of them
foreigners, when bombs exploded in two luxury hotels in central
Jakarta on Friday, Agence France-Presse reported, quoting police.

Benard said the incident may only affect perceptions
temporarily, adding that "investor sentiment will normalize if
there are no repeat attacks, and especially if the perpetrators
are tracked down."

"I think this bombing will lead to stepped-up efforts by the
authorities to go after terrorist groups such as the Jemaa
Islamiya," he also said.

"The government has been quite successful in tackling that
organization, but incidents like this show that there is more
work to be done, which the authorities knew anyway."

S&P rates Indonesia BB-, three notches below investment grade,
while Moody's Investors Service has an equivalent ranking of
Ba3. Fitch Ratings ranks the country BB.

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