{
    "success": true,
    "data": {
        "id": 1857247,
        "msgid": "s-p-report-seen-as-recognition-of-government-policy-credibility-1783947154",
        "date": "2026-07-13 18:45:01",
        "title": "S&P Report Seen as Recognition of Government Policy Credibility",
        "author": "",
        "source": "CNBC",
        "tags": "",
        "topic": "Economy",
        "summary": "Coordinating Minister for Economic Affairs Airlangga Hartarto has welcomed S&P Global Ratings' decision to maintain Indonesia's sovereign credit rating at BBB with a stable outlook, calling it an endorsement of the government's consistent economic policies. The rating agency projects Indonesia's economy will grow around 5% annually, supported by fiscal discipline and improved governance in the natural resources sector. The government views the affirmation as a positive signal to investors amid heightened global uncertainty.",
        "content": "<p>Coordinating Minister for Economic Affairs Airlangga Hartarto has\nresponded to S&amp;P Global Ratings\u2019 decision to maintain Indonesia\u2019s\nsovereign credit rating at BBB for the long term and A-2 for the short\nterm, with the outlook remaining stable. Airlangga stated that this\naffirmation reflects the international community\u2019s confidence in the\ngovernment\u2019s policy direction. \u201cThe rating affirmation by S&amp;P at BBB\nwith a Stable outlook is recognition of the consistency and credibility\nof the government\u2019s economic policies. Amid rising global uncertainty,\nIndonesia has been able to maintain growth at around 5%, uphold fiscal\ndiscipline with a deficit below 3% of GDP, and strengthen governance in\nthe natural resources sector. This is a positive signal for investors\nthat Indonesia\u2019s economic fundamentals remain solid,\u201d said Coordinating\nMinister Airlangga, as quoted on Monday (13\/7\/2026). S&amp;P projects\nthe Indonesian economy will grow by around 5% per year over the next two\nto three years, with real growth forecast at 5.1% in 2026 and an average\nof 4.9% for the 2026-2029 period. The 5.6% year-on-year growth achieved\nin the first quarter of 2026 served as a positive catalyst, driven by\ngovernment spending and accelerated budget disbursement. Indonesia\u2019s GDP\nper capita is estimated to be around US$5,200 in 2026. One of the main\nanchors of the Stable outlook is the government\u2019s commitment to\nmaintaining the budget deficit ceiling below 3% of GDP, as mandated by\nlaw. S&amp;P views the track record of compliance across administrations\nwith this deficit ceiling as an important support for Indonesia\u2019s\ncreditworthiness. State revenue performance was also noted positively,\nwith revenue growth of 19% in the first five months of 2026 compared to\nthe same period the previous year. This improvement was driven by the\nrecovery of tax administration, an increase in VAT receipts, and\nstronger royalty and dividend revenues from the natural resources\nsector. S&amp;P specifically highlighted the government\u2019s steps to\nstrengthen centralised management and reduce leakages in the natural\nresources and minerals sector, which is considered to have the potential\nto increase state revenue as well as export foreign exchange earnings.\nThe establishment of PT Danantara Sumberdaya Indonesia is viewed as an\ninstrument that could change the landscape of the commodities sector,\namong other things by curbing practices of mis-invoicing and transfer\npricing. Together with the strengthening of the Natural Resources Export\nProceeds (DHE SDA) policy, these measures are expected to strengthen\nIndonesia\u2019s external position sustainably. S&amp;P assesses that Bank\nIndonesia has operational independence and has successfully kept\ninflationary pressures under control since the 2010s. The monetary\npolicy mix and exchange rate flexibility are considered to provide\nadequate room for adjustment in the face of external pressures.\nRegarding the financial system, S&amp;P views the government\u2019s\ncontingent risks as relatively limited, with banking sector assets at\nunder 60% of GDP and the banking sector\u2019s country risk at a manageable\nlevel. S&amp;P stated that Indonesia\u2019s rating has the potential to be\nupgraded if there is a structural strengthening of fiscal and external\nmetrics, such as narrowing the budget deficit closer to 2% of GDP,\nsustainably increasing state revenue, lowering financing costs, and\nmaintaining exchange rate stability. Airlangga emphasised that the\ngovernment will continue to strengthen the quality and predictability of\npolicy implementation to maintain market confidence. \u201cThe government is\ncommitted to maintaining macroeconomic stability while driving economic\ntransformation through downstreaming, strengthening governance of export\nproceeds, and increasing productivity. Policy consistency and\npredictability will be key to pushing Indonesia\u2019s rating to a higher\nlevel,\u201d he concluded.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/s-p-report-seen-as-recognition-of-government-policy-credibility-1783947154",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}