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Departemen Komunikasi​

4/16/2024 7:00 PM
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Moody’s Affirmed Indonesia's Sovereign Rating One Level Above Investment Grade (Baa2) with Stable Outlook

Siaran Pers
Press Releases

No. 26/72/Dkom 

Rating agency Moody's has affirmed Sovereign Credit Rating of the Republic of Indonesia at Baa2, one level above investment grade, with a stable outlook on April 16, 2024. Moody's views this affirmation as consistent with its assessment that Indonesia's economic resilience is maintained, supported by high and stable economic growth. The credibility of monetary policies pursued by the central bank and and fiscal policies by the Government are also believed to support this achievement. Various innovations in monetary policy instruments are considered successful in improving external resilience, reflected in the improvement of metrics such as the current account and the foreign exchange reserves adequacy.

In response to Moody's statement, the Governor of Bank Indonesia, Perry Warjiyo, stated that “Moody's affirmation on Indonesia's Baa2 rating with a stable outlook shows strong confidence from international stakeholders in Indonesia's maintained macroeconomic stability and positive medium-term economic prospects. This international trust is supported by policy credibility and the effectiveness of the policy mix orchestrated by the Government and Bank Indonesia, especially in light of elevated global economic uncertainty. Going forward, Bank Indonesia will continue to monitor global and domestic economic and financial developments, formulate and execute the necessary policy measures to ensure macroeconomic and financial system stability, as well as continue to strengthen policy synergy with the Government to support sustainable economic growth."

Moody's projects Indonesia's average economic growth in 2024-2025 will remain at its pre-pandemic level of around 5.0%. This average is higher than other Baa-rated countries at 3.0%. The strong economic growth forecast is mainly supported by the success of various structural reforms undertaken by the Government directed at improving the investment climate which  will affect foreign direct investment, job creation, export growth and improvement in government revenue.

In the external sector, Moody's observes that the resilience of Indonesia's external sector remains intact, as evidenced by the increasing trade balance surplus. The implementation of the downstreaming policy is believed to be a key factor influencing the rise in the export shares of value-added commodities, thereby enhancing the diversification of commodity exports and reducing price sensitivity. This development has supported the improvement of foreign exchange reserves, which reached USD 140.4 billion or equivalent to 6.4 months of imports at the end of March 2024.

Moody's assesses that the synergy of monetary and fiscal policies is the basis for maintaining policy credibility. The implementation of BI's policy mix is perceived to reduce the volatility of the Rupiah exchange rate amidst global financial market uncertainty that affects foreign capital inflows. Meanwhile, the Government's commitment to keep the fiscal deficit below the limit of 3% of GDP is perceived to keep the ratio of Government debt to GDP low compared to other countries in the same rank. In the medium term, the successful implementation of the Government's reform policies will be the key factor in achieving higher economic growth targets in line with the vision of Golden Indonesia 2045.

Moody's previously maintained Indonesia's Sovereign Credit rating at Baa2 with stable outlook on February 10, 2022.


Jakarta, 16 April 2024

Head of Communication Department

Erwin Haryono

Assistant Governor


Contact Center BICARA : (62 21) 131

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Working hours: Monday to Friday, 08.00-16.00 West Indonesia Time​

Halaman ini terakhir diperbarui 4/16/2024 7:40 PM
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