Indonesia's foreign and local-currency sovereign debt ratings were upgraded on Wednesday to Ba2 from Ba3 at Moody's Investors Service, which cited the nation's economic resilience.

Indonesia's relatively strong resilience to the global recession as well as its healthy medium-term growth prospects prompted the rating upgrade, Aninda Mitra, Moody's vice president and sovereign analyst for Indonesia, said in an e- mailed statement today.

The nation's improving economic management and its "appropriate policy stance" also highlight "the growing credibility and predictability of government policies," Mitra said.

Indonesia's economy expanded 4 percent in the second quarter from a year earlier, the fastest pace in Southeast Asia, as its reliance on domestic consumption helped cushion the impact of falling exports. The World Bank on Sept. 14 raised its growth forecast for Indonesia's economy to 4.3 percent from 3.5 percent.