Purbaya Met with S&P Last Night, Here's What Was Discussed

Finance Minister Purbaya Yudhi Sadewa has met with rating agency Standard & Poor’s (S&P) in Jakarta last night, Wednesday (3/6/2026). This addresses rumours suggesting S&P would downgrade Indonesia’s debt rating. “Basically, we explained our position as thoroughly as possible so they understand our economic foundations. That is our obligation,” he stated at the DPR Building on Thursday (4/6/2026). Among the matters conveyed was the position of the State Revenue and Expenditure Budget (APBN). According to Purbaya, there were doubts that the APBN deficit could be kept below 3% of Gross Domestic Product (GDP). “Primarily our seriousness in keeping the deficit below 3%, and we explained the methods for this year and next year, including the improvement of our economic conditions,” he clarified. Regarding tax revenue, the government collected Rp 646.3 trillion up to the end of April 2026, equivalent to 27.4% of the 2026 APBN target of Rp 2,357.7 trillion. “In May, tax growth was 22.1%, much higher than last year. That is encouraging. So that is what I conveyed to them. They will see it later,” Purbaya said. Expansive spending pushed the APBN deficit in May slightly higher than in April 2026. “But fundamentally it is safe. In May, the deficit rose slightly compared to April to 0.7%. However, that is 5 months, while the other was 4 months. If we calculate 12 over 5 times 0.7%, the rough estimate is around 1.8% of GDP,” he explained. The results of this meeting will be discussed internally by S&P before deciding on Indonesia’s rating.