Finance Minister Purbaya: S&P Maintains Indonesia's BBB Rating with Stable Outlook, Highlights High Debt Interest Ratio

The government states that rating agency S&P Global Ratings has maintained Indonesia’s debt rating at investment grade level, accompanied by important notes that need to be heeded. Finance Minister Purbaya Yudhi Sadewa revealed that S&P has confirmed Indonesia’s credit rating remains at BBB with a stable outlook. Moreover, S&P continues to highlight risks from the high ratio of debt interest payments to state revenues. “They discussed in more depth that the interest payment rating compared to income is above 15 percent,” said Purbaya in his statement on Thursday (16/4/2026). “I said we will continue to monitor that and ensure the economic situation remains good and fiscal health will be maintained without deteriorating in terms of payments,” he added. On the other hand, S&P has indeed confirmed that Indonesia’s debt rating remains at triple B (BBB) with a stable outlook. This status indicates that Indonesia is still deemed investment-worthy with relatively low default risk. However, behind this assessment, S&P previously delved into the government’s consistency in keeping the budget deficit below 3 percent of gross domestic product (GDP) in detail. “They asked in quite some detail about our fiscal condition, including this year’s and last year’s deficit; mainly they wanted to see if we are consistent in keeping it below 3 percent of GDP,” said Purbaya. The government claims fiscal discipline remains intact, with the deficit estimated to decline from 2.9 percent to around 2.8 percent in the government financial report. Nevertheless, signals of caution persist. The high debt interest ratio relative to revenues indicates that fiscal space could become increasingly constrained if state receipts do not grow accordingly. Purbaya stated that the government is relying on improvements in tax and customs revenue performance to maintain that balance. “When we informed them that tax growth this year for the first two months was 30 percent and from January to March compared to last year it grew 20 percent, they seemed quite satisfied,” he said. In addition, the government claims to have undertaken tax and customs organisational restructuring to enhance revenue performance. Although macro indicators are deemed to be improving and the rating remains stable, S&P’s note on the debt interest burden serves as a reminder that fiscal pressures have not fully eased. Especially amid global uncertainties, the ability to maintain a balance between economic growth and fiscal health will be key to preserving investor confidence moving forward.