186 Chapter V Conclusion V.I Conclusion 1. Among the four sovereign credit rating models, (Fitch, Moody’s, S&P, and Rating with CDS), the best model that can explain the relationship between countries Sovereign Credit Rating and the variables CAB, GDEB, GDPCC, INFL, INV, RES, REV, and CDS is the model with an CDS as an additional variable (RCDS Model). 2. RCDS Model empirically shows the most robust with model enhancements on the model specification. The model with the CDS variable has the highest R-squared (coefficient of determination) and explains more significant relationship among the independent and dependent variables compare to the other three existing rating models. 3. All (four) Sovereign Credit Rating determination models show that the current account balance, inflation, and foreign exchange reserves are significant variables influencing the Sovereign Credit Rating Indonesia and its Peer Group. Meanwhile, government debt significantly affects the rating (except the Fitch model) and specifically CDS on the RCDS. 4. Thus, the authority that carries the task of formulating and implementing the engagement strategy with the rating agencies to achieve optimum rating must consider those variables and focus on the formulation of its strategy. 5. A planned, more focused, and goal-oriented IR communication strategy is required amidst the potential risk of rating downgrades and weakening investor confidence in the Indonesian economy. Moreover, a comprehensive and integrated communication plan must be foreseen with the high-risk factors ahead, in line with global uncertainty in numerous sectors and economic pressures. 6. The development of an IR communication strategy framework conducted with five elements of a communication strategy, which include: determining communication objectives, elaboration of communication materials, including determination of key messages; identification of communicators 187 and stakeholders (who and to whom), determining the right communication media, and determining the mechanism for obtaining feedback. 7. The selection of communicators must be carried out appropriately by considering the strategic value of concerns, the stakeholders, and the communication media. In the case of Indonesia, the central IR communicators are the IRU Secretariat/Coordinator, National IRU, Top Management Level and Overseas Representative Office, with three main stakeholders, namely rating agencies, investors, and opinion-makers. V.2 Recommedations The sovereign credit rating determination model, with CDS as a newly proposed variable, has been empirically proven to be a more robust model based on the model specification. Referring to the mentioned findings, the following recommendations are presented as follows: V.2.1.