Moody's Sets Indonesia's Credit Rating Stable, Bank Indonesia Says It's A Positive Indicator

Governor of Bank Indonesia (BI) Perry Warjiyo. (Photo: Doc. ANTARA)

JAKARTA - International rating agency Moody's Investor Service sets Indonesia's credit rating or sovereign credit rating at the Baa2 level with a stable outlook.

Moody's assessed that Indonesia's economy remains resilient, supported by stable and solid economic growth and the credibility of maintained monetary and fiscal policies.

In addition, Moody's also explained that the Indonesian economy remains strong, supported by superior natural resources and demographic bonuses as well as the commitment of the monetary and fiscal authorities to maintain policy credibility and to support macroeconomic stability.

International rating agency Moody's considers that strong domestic demand, especially from household consumption and investment, will drive Indonesia's economic growth in 2025 and 2026.

The sustainability of policies to encourage competitiveness in the manufacturing and commodity sectors is also considered to have a positive contribution to economic growth and a higher and more sustainable level of income.

According to Moody's, strengthening aspects of government revenue and fiscal flexibility, increasing economic growth and competitiveness, as well as deepening financial markets are also factors that will provide opportunities for Indonesia's Sovereign Credit Rating (SCR) to increase in the future.

Responding to the assessment, the Governor of Bank Indonesia, Perry Warjiyo stated, Moody's confidence in Indonesia's economic resilience is one of the positive indicators reflecting international confidence in Indonesia's solid economic fundamentals, amid the high global financial uncertainty.

"This is supported by the authority's commitment to maintaining credibility and strengthening policy synergies to ensure macroeconomic stability is maintained," he said in his statement, Friday, March 21.

Perry conveyed that the coordination covers several areas, namely related to the policy of stabilizing the Rupiah exchange rate to mitigate the impact of global dynamics, encouraging economic financing through the Macroprudential Liquidity Incentive Policy (KLM).

In addition, Perry said that BI also provides support in accelerating the Government's digital transformation, and strengthening downstreaming and food security.

Perry said that Bank Indonesia also continues to strengthen policy synergies with the Financial System Stability Committee (KSSK) to maintain financial system stability.

Furthermore, Perry conveyed that in order to encourage global confidence in the Indonesian economy to remain positive, Bank Indonesia will continue to strengthen policy coordination with the Government to maintain stability and encourage economic growth in line with the Asta Cita Pemerintah program.