No. 27/55/DKom
Fitch Ratings (Fitch) has affirmed Indonesia's Sovereign Credit Rating at BBB (one level higher than the lowest investment grade) with a stable outlook, as announced on March 11, 2025. A favorable medium-term growth outlook and a low government debt to GDP ratio are key factors supporting this affirmation.
In its report, Fitch projects that Indonesia's economy in 2025 will be primarily driven by strong domestic demand, supported by public spending on social assistance and infrastructure projects. Private investment is also expected to remain robust, fueled by moderate monetary policy easing, reduced policy uncertainty following the 2024 elections, and continued downstreaming initiatives. Fitch notes that improvements in structural aspects, government revenue, and external resilience will create opportunities to enhance Indonesia's Sovereign Credit Rating.
In response to Fitch's statement, the Governor of Bank Indonesia, Perry Warjiyo, stated “Fitch's affirmation on Indonesia's rating at BBB with stable outlook shows strong confidence from international stakeholders in Indonesia's macroeconomic stability and sound medium-term economic prospects, supported by strong credibility of policy implementation and the synergy of a well-calibrated policy mix between the Government and Bank Indonesia amid ongoing global uncertainties."
Bank Indonesia remains fully committed to strengthening monetary policy effectiveness in order to maintain inflation in 2025 and 2026 within the 2.5±1 % target range, while continuing to support efforts to strengthen economic growth. Bank Indonesia will also further enhance synergy with the central and regional governments to maintain the stability of volatile food inflation. Going forward, Bank Indonesia will also continue to closely monitor global and domestic economic and financial developments, formulate and implement necessary measures to maintain macroeconomic and financial stability, and further strengthen policy synergy with the Financial System Stability Committee (KSSK) to mitigate various risks that could potentially disrupt financial system stability. Moreover, Bank Indonesia will enhance policy coordination with the Government to support economic growth in line with the Asta Cita program.
Jakarta, 11th March 2025
Head of Communication Department
Ramdan Denny Prakoso
Executive Director
