After S&P Rating is Retained, Purbaya: Indonesia is Not Worried but Towards a Golden Indonesia

Minister of Finance Purbaya Yudhi Sadewa (left) hands over the government's response file to Deputy Speaker of the House of Representatives Sari Yuliati (center) at the 25th Plenary Meeting of the DPR in the 2025-2026 Session Period V Session at the Parliament Complex, Senayan, Jakarta. (Photo: ANTARA)

JAKARTA - Minister of Finance Purbaya Yudhi Sadewa believes that Indonesia's economic prospects remain strong after S&P Global Ratings again maintained Indonesia's credit rating (sovereign credit rating) at the investment grade level.

According to him, the decision reflects the confidence of international rating agencies in the direction of the government's economic policy.

Purbaya said that S&P again confirmed Indonesia's credit rating with a stable outlook and assessed that the achievement was an important capital to increase the optimism of market participants and investors towards the national economy.

"We also want to convey good news that the good support and cooperation between the government and the House of Representatives of the Republic of Indonesia, yesterday the S&P rating agency maintained the credit rating of the Republic of Indonesia at the level of BBB or A-2 with a stable outlook," he said in a plenary session, Tuesday, July 14.

He revealed that several months before the announcement, the government together with members of the DPR had held a meeting with investors and representatives of S&P, and on that occasion, the government emphasized that the relationship between the executive and legislative branches was harmonious in drafting policies that were oriented towards improving the welfare of the community.

According to Purbaya, communication with investors and rating agencies also strengthens confidence in the consistency of Indonesia's economic policies.

"We, the Parliament, the DPR with the Government are a good unity so that they can see that our policies are policies that are intact and really aim to enrich the people without violating existing laws," he said.

Purbaya also touched on various negative sentiments that had overshadowed Indonesia since the beginning of the year, including the emergence of speculation regarding the potential for a downgrade in credit ratings, but, with the latest decision from S&P, these concerns have not been proven.

"So this S&P announcement gives a clear indication that indeed the international institutions are correct, honest, prudent and independent, see our policies as good, of course this is thanks to the support of the XI commission and other members of the DPR. So, in the future we still ask for support in terms of cooperation so that the government can continue to run its budget prudently in accordance with laws and there is no deviation here and there," he said.

Furthermore, Purbaya assessed that the affirmation of the credit rating could be a momentum to strengthen the optimism of the public and market players.

He hopes that this positive sentiment will be able to maintain confidence in the financial market, including the rupiah exchange rate, so that Indonesia can continue to maintain the momentum of growth towards Indonesia Emas.

"I think in the future with this news, we can start to be more courageous in telling positive sentiments to the public, to the capital market and others including the rupiah, that we are going forward, not backwards, so Indonesia is not anxious Indonesia but Indonesia is heading towards gold Indonesia," he said.