JAKARTA - The rating agency Rating and Investment Information, Inc. (R&I) maintains the Sovereign Credit Rating (SCR) of the Republic of Indonesia at the BBB+ rating, two levels above the investment grade, with a stable outlook.
This decision reflects R&I's confidence in Indonesia's maintained economic fundamentals supported by demographic expansion, abundant resources and the growing manufacturing industry sector.
R&I assesses that Indonesia's inflation remains stable, with the level of government debt remaining low, as well as prudent monetary and fiscal policies.
However, R&I considers that further assessment of the government's steps to encourage economic growth by maintaining a fiscal condition that remains healthy in the medium term.
The Governor of Bank Indonesia, Perry Warjiyo, said that the affirmation of R&I over Indonesia's ranking reflects strong international confidence in the solid macroeconomic condition and stability of the financial system that is maintained amidst continued global economic and financial uncertainty.
"A stronger joint effort is needed to encourage higher and more sustainable economic growth, in line with the national economic capacity. A close synergy between Bank Indonesia and the Government is expected to further strengthen positive perceptions of the Indonesian economy", he said in his statement, quoted Wednesday, October 29.
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R&I estimates that the overall Indonesian economy in 2025 will grow in the range of 5 percent, in line with Bank Indonesia's projection above the midpoint of around 4.6 percent'5.4 percent.
Then, R&I also believes inflation will be maintained within the target range, while the current account deficit is estimated to remain low at around 1 percent of GDP.
Meanwhile, from a fiscal point of view, the Government remains strongly committed to maintaining a fiscal deficit below 3 percent of GDP.
In the future, he said Bank Indonesia would continue to monitor and monitor developments in the global and domestic economy and finance, take the necessary policy steps, and continue to increase synergy with the Government to support sustainable economic growth.
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