President Prabowo Urges Self-Reliance Despite Global Rating Agencies' Assessments

President Prabowo Subianto has highlighted attempts to frighten Indonesia through investment ratings issued by several global rating agencies during a plenary cabinet session at the State Palace in Jakarta. The President revealed that there were efforts to intimidate the country by threatening to lower investment climate scores following the government’s announcement of several policies, including the centralised export of strategic commodities through PT Danantara Sumberdaya Indonesia (DSI). “Previously, we were frightened. There were rating agencies, global rating agencies, that would give Indonesia a bad report card. We would be downgraded so that no one would want to invest in Indonesia. Enough is enough, we are not afraid,” President Prabowo stated before the members of the Red and White Cabinet and state officials. He further noted that contrary to the threats, Standard & Poor’s (S&P) Global Ratings maintained Indonesia’s stable outlook and its BBB/A-2 investment grade rating. S&P assessed that the government’s move was a correct step for the Indonesian nation, which could increase state revenue, and therefore they did not lower the outlook. The President stressed that regardless of the scores given by global rating agencies, Indonesia must believe in its own strength. “It is not that we must always be satisfied with the ratings of other nations. Once again, brothers and sisters, believe in our own strength. We live in a global world, but we must believe in our own strength. We believe in our own fundamentals,” Prabowo said. In recent months, several prominent global rating agencies have released their assessments of Indonesia’s economic and investment outlook. Of the three agencies that have issued assessments—Moody’s Ratings, Fitch Ratings, and S&P Global Ratings—only S&P maintained Indonesia’s outlook at stable with a BBB/A-2 rating. This rating and outlook were maintained because S&P assessed that state revenues are gradually recovering and export performance is believed to be improving. For the President, such assessments are necessary, but the government remains focused on the fundamental needs of the Indonesian people: food, energy, and water. “Whatever happens, our food is now secure, our energy is strong enough, our water is abundant, it just needs management. We are starting to be recognised, and we will prove it. I believe and am confident that we will become the world’s food barn. I believe that, I do not know in whose era it will be, but I believe it,” Prabowo concluded.