S&P Retains Indonesia's Credit Rating at BBB Level, BI: Global Confidence Remains Strong

JAKARTA - International rating agency S&P Global Ratings again maintained Indonesia's Sovereign Credit Rating at the BBB level with a stable outlook on July 13, 2026.

This decision confirms Indonesia's position as an investment grade in the midst of global economic uncertainty.

S&P assessed that the stable outlook was supported by the belief that the weakening of a number of fiscal and external sector indicators was only temporary and would improve as the direction of government policies and implementation became more consistent.

Bank Indonesia Governor Perry Warjiyo welcomed the decision positively, and emphasized that the affirmation of Indonesia's credit rating reflects the still high confidence of international investors and stakeholders in the national macroeconomic stability and the prospect of a strong economic growth.

"This is supported by the synergy of a close mix of policies between the Government and Bank Indonesia in strengthening stability and encouraging domestic economic growth amid still high global uncertainty," he said in a statement, Tuesday, July 14.

He emphasized that his party would continue to strengthen the mix of monetary, macroprudential, and payment system policies to maintain stability while supporting sustainable economic growth.

In addition, Perry said BI will also continue to strengthen coordination with the government, especially through monetary and fiscal policy synergies to mitigate the impact of global uncertainty, including risks triggered by conflicts in the Middle East on the domestic economy.

"The synergy of policies with the Financial System Stability Committee (KSSK) has also been strengthened to help maintain the stability of the financial system and encourage financing for the Government's Asta Cita program," he said.

As is known, the stable outlook reflects the expectation that state revenues will continue to recover this year, while export revenues will increase as commodity prices improve.

The government's policies to increase state revenues and export performance from the natural resources sector are also expected to support an increase in revenues in the medium term, especially if policy changes become more predictable and effectively implemented.

The stable outlook also reflects expectations that the government remains committed to maintaining a fiscal deficit below 3 percent to maintain fiscal sustainability.

In the future, S&P can increase Indonesia's sovereign credit rating with the potential to increase if the structural strengthening of fiscal and external indicators continues.

From a fiscal perspective, this is supported by a sustained reduction in the fiscal deficit through significant increases in state revenues, decreasing financing costs, and exchange rate stability.

Meanwhile, from the external side, the improvement in the rating needs to be supported by improving indicators, including a reduction in foreign debt and gross external financing needs.