Standard & Poor’s (S&P) affirmed Indonesia's sovereign credit rating at BB+/stable outlook. Favorable fiscal and debt metrics as well as moderately strong growth prospects were cited as the key factors supporting the affirmation of Indonesia's sovereign credit rating. On the other hand, moderately weak institutional strength, low GDP per capita and external vulnerability are factors that can negatively influence the rating. S&P also expects that Indonesia's sustainable economic policies will be maintained after the 2014 presidential election.

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Due to a lack of positive domestic and external sentiments, the Indonesian rupiah exchange rate has depreciated to a six-week low against the US dollar. Based on the Bloomberg Dollar Index, Indonesia's currency declined 0.66 percent to IDR 11,521 per US dollar by 16:22 local Jakarta time. In fact, several negative domestic sentiments are the reason behind the current depreciation. Firstly, revived concerns about Indonesia's current account deficit and, secondly, concerns about capital outflows due to dividend payments.

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At least 17 Indonesian companies listed on the Indonesia Stock Exchange (IDX) have announced to pay out dividends to shareholders for the financial year 2013. The payouts will be conducted between 23 April and 30 June 2014. These dividend payout announcements are expected to have a positive impact on the performance of Indonesia's benchmark stock index (known as the Jakarta Composite Index or IHSG). However, the payout is usually followed by a short period of profit taking as investors sell certain stocks.

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ICRA Indonesia released an analysis of the economic impact of the ban on export of raw minerals. The ban - stipulated by the new 2009 Mining Law - became effective per 12 January 2014 (although in a milder form as some mineral ore exports are allowed under specific terms) and aims at boosting domestic processing. However, it led to great concern among domestic and foreign stakeholders as its implications on the economy of Indonesia - a global leader in exports of mineral resources - were unknown.

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