​No. 26/154/Dkom 

S&P affirmed the Sovereign Credit Rating of the Republic of Indonesia at BBB, one level above investment grade, with a stable outlook as of July 30, 2024. S&P believes that Indonesia's economic growth prospects will remain solid, external resilience and the government's debt burden will be maintained, supported by a credible monetary and fiscal policy framework.

Governor of Bank Indonesia, Perry Warjiyo, responded to S&P's decision by stating, "S&P's affirmation of Indonesia's rating on BBB reinforces the confidence of major rating agencies such as Fitch and Moody's which have affirmed Indonesia's rating earlier this year. This affirmation also reflects the global community's  confidence in Indonesia's favorable economic prospects, as well as confidence in the policy synergy measures taken by the Government and Bank Indonesia. Bank Indonesia will continue to strengthen policy coordination with the Government to ensure macroeconomic and financial system stability to promote sustainable growth amid global uncertainties."

S&P projects that Indonesia's average economic growth over the next three to four years will continue to be around 5.0%. Economic growth is driven by strong domestic demand, as well as increased government spending and private investment. Furthermore, S&P views the resilience of the external sector as being maintained in the medium term. External sector performance is supported by higher projection in exports supported by the implementation of downstream policies amid weakening commodity prices. S&P also appreciates the Government of Indonesia's commitment to keeping inflation under control since 2010. S&P projects inflation in 2024-2025 to be in the target range of 2.5%+1%, reaching 2.8% and 3.0%, respectively. In addition, the innovation of pro-market monetary operation strategies with the use of market-based instruments is considered to further increase the flexibility of monetary policy.   

In the fiscal sector, S&P views the government as remaining committed to keeping the fiscal deficit below 3% of GDP. In general, S&P believes the new administration will focus on the continuity of economic policies to maintain credibility and prevent further significant economic and financial disruptions.

S&P previously maintained Indonesia's Sovereign Credit Rating at BBB with a stable outlook on July 4, 2023.

Jakarta, 30 July 2024

Head of Communication Department

Erwin Haryono

Governor Assistant