No. 27/165/DKom
S&P Global Ratings (S&P) has affirmed Indonesia's Sovereign Credit Rating at BBB (one notch above the lowest investment grade) with a stable outlook, as announced on July 29, 2025. The affirmation is supported by robust growth prospects, sound fiscal policy frameworks, and a relatively low burden of net external and government debt. Meanwhile, the stable outlook reflects S&P's view that the government remains committed to maintaining the 3% annual fiscal deficit ceiling as a key anchor for fiscal sustainability. Furthermore, the continued development of the country's commodity-based industries (downstreaming) is expected to maintain external stability going forward.
Governor of Bank Indonesia, Perry Warjiyo, responded to S&P's decision by stating, “S&P's affirmation on Indonesia's rating at BBB with stable outlook reflects strong confidence from international stakeholders in Indonesia's macroeconomic stability and robust growth economic prospects. This confidence is supported by prudent policy settings and the effective synergy of policy mix between the Government and Bank Indonesia amid ongoing global uncertainties."
Going forward, an upgrade to Indonesia's sovereign credit rating may depend on stronger capacity to service external debt, supported by higher external revenues or reduced dependence on external financing. On the other hand, the rating may face downward pressure if the changes of government debt to GDP ratio increases persistently above 3%, the government interest payment to revenue ratio exceeds 15% on a sustained basis, or if there is a structural and prolonged weakening in export revenues.
Bank Indonesia remains fully committed to strengthening monetary policy effectiveness to maintain Rupiah exchange rate stability and ensure inflation stays within the target corridor, while continuing to nurture economic growth. Going forward, Bank Indonesia will continue to strengthen policy synergy with the Government to maintain stability and foster economic growth in line with the Government's Asta Cita program. Bank Indonesia also continues to strengthen policy synergy with the Financial System Stability Committee (KSSK) to maintain financial system stability.
S&P previously maintained Indonesia's Sovereign Credit Rating at BBB with a stable outlook on July 30, 2024.
Jakarta 29th July 2025
Communication Department
Ramdan Denny Prakoso
Executive Director
