Indonesia Again Achieves Credit Rating with Stable Outlook, BI Says Economic Prospects Are Well Maintained Post-Election

Governor of Bank Indonesia (BI) Perry Warjiyo. (DOC. ANTARA)

JAKARTA - On Friday, March 15, the Fitch rating agency again maintained the Republic of Indonesia's credit rating or Sovereign Credit Rating at BBB (one level above the lowest level of investment grade) with a stable outlook.

"The affirmation of Indonesia's rating at BBB with a stable outlook shows the strong confidence of international stakeholders in Indonesia's macroeconomic stability and medium-term economic prospects which will remain maintained after the 2024 elections," said Bank Indonesia (BI) Governor Perry Warjiyo in Jakarta, quoted by ANTARA, Saturday, March 16.

Fitch previously maintained Indonesia's Sovereign Credit Rating at BBB with a stable outlook on September 1, 2023. Sovereign Credit Rating or the country's credit rating is a measure of the government's ability to pay its debts.

Fitch's decision takes into account Indonesia's good medium-term economic growth prospects, controlled inflation within the target range, and a low ratio of government debt to gross domestic product (GDP).

Indonesia's economic growth in 2025 is predicted to accelerate, driven by expectations of continued post-2024 election policies as well as monetary and fiscal policies that support macroeconomic stability.

From the external side, a number of indicators such as current transactions show improvement compared to before the pandemic, as well as increasing Foreign Direct Investment (PMA) supported by continued downstream activities.

According to Perry, international trust is supported by policy credibility and strong policy mix synergy between the government and Bank Indonesia amidst still high global economic uncertainty.

Going forward, BI will continue to monitor global and domestic economic and financial developments, formulate and implement the necessary steps to ensure macroeconomic and financial stability is maintained, including through further adjustments to the policy stance.

Bank Indonesia will also continue to strengthen synergy with the government to support the achievement of inclusive and sustainable economic growth.