OJK Chief: S&P Rating Signals Indonesia's Economic and Financial System Resilience

The Chair of the Board of Commissioners of the Financial Services Authority (OJK), Friderica Widyasari Dewi, stated that S&P Global Ratings’ decision is a positive signal that Indonesia’s economic fundamentals and financial system stability remain intact amidst global dynamics. The OJK welcomed S&P Global Ratings’ decision to maintain Indonesia’s Sovereign Credit Rating at BBB with a Stable outlook. “S&P’s decision to maintain Indonesia’s credit rating with a stable outlook shows that Indonesia’s economic fundamentals remain preserved amid global uncertainty. This assessment also serves as an encouragement for us to continue strengthening the performance of the financial services sector and to continue reforms to support national economic growth,” Friderica said in an official statement in Jakarta on Tuesday. In its report, S&P assessed that Indonesia’s economic fundamentals are supported by strong domestic demand, prudent fiscal policy, and a credible and flexible policy framework in maintaining macroeconomic stability. In line with this, the OJK will continue to carry out various efforts to strengthen the financial services sector through enhanced integrated risk-based supervision, financial market deepening, and improved market integrity and governance. Additionally, efforts will be made through the acceleration of digital transformation in accordance with the mandate of the Financial Sector Development and Strengthening Law (UU P2SK). Friderica said these various efforts are aimed at expanding the financial sector’s capacity to mobilise long-term financing for the business world and national development. “This step simultaneously supports Indonesia’s strategic programme agenda, including increased investment, economic transformation, and strengthening national competitiveness,” Friderica stated. She continued that the national financial services sector remains in a stable condition, supported by strong capital, adequate liquidity, and a well-maintained risk profile. Furthermore, it is supported by continuously developing intermediation, enabling it to support financial system stability and economic financing. As part of the Financial System Stability Committee (KSSK), the OJK ensures it will continue to strengthen synergy with the Government, Bank Indonesia, and the Indonesia Deposit Insurance Corporation (LPS) to maintain financial system stability and support Indonesia’s economic growth.