Purbaya Welcomes S&P's Retention of Indonesia's Rating, Vows Fiscal Discipline
Finance Minister Purbaya Yudhi Sadewa has stated that the government will continue to maintain fiscal discipline after Standard & Poor’s (S&P) Global Ratings affirmed Indonesia’s credit rating at BBB with a stable outlook. He described the decision as a positive signal that the direction of the country’s economic policy retains trust amid global uncertainty.
“This announcement from S&P provides a clear indication that honest, prudent, and independent international institutions view our policies favourably,” Purbaya said during a House of Representatives (DPR) plenary meeting on the Accountability for the Implementation of the 2025 State Budget (APBN) in Jakarta on Tuesday.
Purbaya noted that the government and the DPR had previously engaged in dialogue with investors and S&P representatives to explain the direction of Indonesia’s economic policy. He said the meeting demonstrated synergy between the executive and legislative branches in implementing policies oriented towards the public interest. “They can see that our policies are comprehensive and genuinely aimed at prospering the people without violating existing laws,” he said.
He added that the S&P assessment serves as important capital for building optimism about the national economy. “Going forward, we can be bolder in conveying positive sentiment to the public and capital markets that we are ready to move forward, not backwards,” he said.
Purbaya also stressed that the government will continue to strengthen fiscal management by improving the quality of state spending, enhancing budget efficiency, and boosting state revenue. He said the government will expand the tax base through the use of data and technology without solely relying on raising tax rates.
During the meeting, Purbaya reported that Indonesia’s economic condition throughout 2025 remained resilient despite global challenges. The economy grew by 5.11 per cent, supported by household consumption which grew by 4.98 per cent and gross fixed capital formation which grew by 5.09 per cent. Inflation was recorded at 2.92 per cent, remaining within the government’s target range.
On the fiscal side, the 2025 state budget deficit was recorded at 2.81 per cent of gross domestic product (GDP), or Rp 670.34 trillion. The unemployment rate also decreased to 4.85 per cent in August 2025 from 4.91 per cent the previous year, while the poverty rate fell from 8.57 per cent in September 2024 to 8.25 per cent in September 2025.