Ministry Of Finance: Fitch Maintains Indonesia's Credit Rating At BBB Reflects Indonesia's Success In Capai Fiscal Consolidation

Illustration. (Photo: Doc. Antara)

JAKARTA - The Ministry of Finance stated that the decision of the rating agency Fitch to re-maintain Indonesia's credit rating (rating) in the BBB position with a stable outlook reflects Indonesia's success in achieving fast fiscal consolidation.

"This decision reflects Indonesia's success in achieving fast fiscal consolidation, supported by solid revenue growth, well-calibrated policies, as well as stable economic stability and external conditions after the pandemic," said Head of the Communications and Information Services Bureau of the Ministry of Finance Deni Surjantoro in Jakarta, quoted from Antara, Tuesday, March 19.

Fitch assesses that Indonesia has a positive growth outlook in the medium term, supported by economic stability and a relatively low government debt ratio to gross domestic product (GDP). However, state revenues and structural indicators that are still relatively lower than the peer countries 'BBB' are still a challenge for Indonesia.

Fitch also projects that Indonesia's economic growth remains solid, driven by strong domestic investment and stable domestic consumption.

Going forward, Fitch takes into account that government revenues have the potential to increase over time.

The decision to maintain a stable outlook reflects Fitch's belief that Indonesia is able to maintain macroeconomic stability in the short term. Thus, future prospects for Indonesia remain stable. In addition, the affirmation of Fitch's assessment is also concrete evidence that political stability and policies in Indonesia are well maintained during the general election.

"The government remains alert to global risks and implements healthy and sustainable fiscal policies. The government also continues to be committed to protecting people's purchasing power, controlling inflation, and maintaining the momentum of economic recovery," said Deni.