Prabowo Says S&P Backs Danantara Sovereign Indonesia, Maintains Stable Outlook

Jakarta, CNBC Indonesia – President Prabowo Subianto has stated that concerns from several parties regarding a potential downgrade of Indonesia’s credit rating by international rating agencies have proven unfounded. He made the remarks during a Plenary Cabinet Session at the State Palace on Monday (20/7/2026).

“My friends, of course we must not be complacent too quickly, but we can already see the results of our current steps — that we were once threatened with a global rating agency giving Indonesia a bad report card, that we would be downgraded so that no one would want to invest in Indonesia,” Prabowo explained.

In fact, the global rating agency Standard & Poor’s (S&P) has given a positive assessment of the establishment of PT Danantara Sovereign Indonesia (DSI).

According to Prabowo, the latest assessment actually points in a different direction. S&P viewed the establishment of PT DSI as an appropriate step with the potential to strengthen state revenue.

“We were not afraid, and it turns out S&P has already announced that they consider the establishment of PT DSI to be correct. They said it is the right step for Indonesia and that it increases our revenue,” Prabowo said.

Not only that, S&P also maintained Indonesia’s outlook at a stable level. Indonesia’s status as an investment grade country within the emerging market group also remains secure.

“And they did not downgrade our outlook — we remain stable, holding an investment grade rating as an emerging market,” he said.

Nevertheless, Prabowo cautioned that Indonesia must not rely too heavily on assessments from international institutions. According to him, the main strength of the national economy still lies in robust domestic fundamentals.

“We should not always be satisfied with the ratings of other nations. Once again, trust in our own strength. We live in a global world, but we must believe in our own strength, in our own fundamentals,” Prabowo asserted.

He assessed that several of Indonesia’s fundamental indicators remain in good condition. Food security is considered safe, the energy sector is fairly strong, and water resources are abundant, although they still require better management in a number of regions.

“So what has happened? Food is secure, energy is fairly strong. Our water is abundant — it is simply a matter of management, with some areas still lacking. So our fundamentals are strong,” he concluded.