Standard & Poor’s Revised Indonesia’s Sovereign Credit Outlook from Stable to Positive - Bank Sentral Republik Indonesia
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June 01, 2020

No. 17/39/DKom

Standard and Poor's (S & P) today (May 21, 2015) revised The Republic of Indonesia’s rating outlook from Stable to Positive and affirmed the rating at BB+. The positive outlook reflects the possibility that S&P could raise ratings on Indonesia over the next 12 months.

In the press release today, the main sovereign analyst for S&P Indonesia, Kyran A. Curry, mentioned that the main factor supporting this decision is improvements in Indonesia's policy framework which have enhanced monetary and financial sector management. Greater policy effectiveness and predictability have resulted in expanded fiscal and reserve buffers and improved Indonesia's external resilience.

The Governor of Bank Indonesia, Agus D.W. Martowardojo said that improvement of rating outlook from S&P is as predicted, but the next target is to obtain an increase towards the investment grade from S&P. S&P is currently the only agency that has not position Indonesia as investment grade.

The outlook is an acknowledgment of the Indonesian economic resiliency as a result of strong policy coordination that has been taken by the authorities amidst the domestic and global pressures. The rating action also showed increased global optimism over the prospects of Indonesia's economic performance.

In detail, S&P noted that the rating on Indonesia would possibly rise over the next 12 months if the government achieves its stated objective of improving the quality of expenditure. This would include allowing fuel pump prices to adjust more freely and allocating its public investment budget efficiently.

Jakarta, 21 May 2015
Communication Department

Tirta Segara
Executive Director



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