Purbaya Meets with S&P: Key Discussion Points Revealed

Finance Minister Purbaya Yudhi Sadewa stated that he met with representatives from the international debt rating agency Standard & Poor’s (S&P) Global Ratings on Wednesday night, 3 June 2026. This meeting was part of S&P’s visit to review Indonesia’s economic conditions.

“Essentially, we explained our position as thoroughly as possible so that they understand the nature of our economic foundations,” Purbaya told reporters at the DPR Building on Thursday, 4 June 2026. He noted that S&P will discuss the outcomes of the meeting with their internal team.

The State Treasurer claimed that one of the primary points emphasised by the government was the seriousness of maintaining the State Budget (APBN) deficit below 3 per cent of Gross Domestic Product (GDP). Additionally, Purbaya explained the government’s efforts to improve economic conditions, noting that state revenue has grown significantly, highlighted by a 22 per cent increase in tax revenue in May 2026.

Purbaya’s meeting with S&P takes place amid rumours that the rating agency may downgrade Indonesia’s debt rating. Currently, Indonesia’s rating stands at BBB, which is considered investment grade with a stable outlook.

Last April, S&P released an analysis suggesting that Indonesia’s debt rating is vulnerable to weakening due to the war in the Middle East. According to the global rating agency, Indonesia’s position is more vulnerable compared to other Southeast Asian nations, such as Malaysia, Thailand, and Vietnam.

S&P Global highlighted fiscal risks resulting from rising energy prices. “Rising energy prices increase budget subsidy payments, thereby burdening the fiscal deficit,” S&P Global wrote in its report on Wednesday, 15 April 2026.