Purbaya Happy: S&P Maintains Indonesia's BBB Rating and Stable Outlook

Finance Minister Purbaya Yudhi Sadewa stated that the rating agency Standard & Poor’s (S&P) will assign a triple B rating with a stable outlook to Indonesia. This was conveyed by Purbaya after meeting with S&P representatives in Washington DC, United States, on Thursday (16/4/2026). “The news is somewhat pleasing for me that S&P has confirmed that our rating remains triple B with a stable outlook,” said Purbaya. It is known that the triple B (BBB) rating is in the “Investment Grade” category (investment-worthy), indicating a relatively low level of default risk. The focus of S&P’s questions in the discussion with Purbaya was on the fiscal side. “They (S&P) asked in 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,” he explained. “I said we are consistent with that policy; President Prabowo has directed that our deficit be kept below 3 percent,” clarified Purbaya. According to Purbaya, S&P has some concerns regarding debt payments relative to revenue or taxes. Purbaya immediately explained that this can be controlled going forward and is not yet at a dangerous level, in line with improvements in tax and excise collection. Organisational restructuring of the Directorate General of Taxes and the Directorate General of Customs and Excise has also been carried out to improve their performance. “And when we told them that tax growth in the first two months of this year was 30 percent and from January to March compared to last year it grew 20 percent, they seemed quite satisfied,” said Purbaya. According to Purbaya, S&P assessed that Indonesia’s economic growth improved in the fourth quarter compared to previous periods. All macroeconomic and microeconomic activities in Indonesia under President Prabowo’s administration have improved. “It was 2.9 percent at the time of our initial report, but the final figure will be around 2.8 percent; I mentioned that indication, so they were very positive about such a ratio,” he emphasised. Additionally, Indonesia’s debt position was discussed, including future instalment and interest payments. “They discussed in more depth that the rating, interest payments, compared to income above 15 percent,” he said. “I said we will continue to monitor that and ensure the economic situation remains good, and fiscal will be maintained without deteriorating from the payment side,” said Purbaya. Regarding a rating that stated Indonesia has high risk in the Asian region, Purbaya clarified that the assessment referred to a report provided the day before the meeting with S&P.