Big Thumbs Up to Indonesia's Fuel Subsidy Cut: First State

        0342 GMT [Dow Jones] First State Investments will not change its position on fixed income assets in Indonesia following a fuel subsidy cut announced late Monday, says Jamie Grant, head of Asian fixed income for the firm, but sees the development as positive for the country. First State oversees about $53 billion in fixed income assets, including Indonesian government bonds denominated in rupiah and U.S. dollars. Grant says the subsidy cut is positive for all asset classes. "It's positive on all fronts, from a sentiment point of view, from a presidential point of view, from the currency point of view," he says, adding that the central bank "will take note of the positive move from all asset classes today and that may give them the luxury of possibly staying on hold" when it meets Tuesday afternoon. The subsidy cut will save the Indonesian government about $10 billion a year. (jake.watts@wsj.com; Twitter: @jmwatts_)
        (END) Dow Jones Newswires

        November 17, 2014 22:42 ET (03:42 GMT)

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