S&P Affirms Indonesia's BBB Rating, Misbakhun Urges Fiscal Discipline

Member of the House of Representatives Commission XI Mukhamad Misbakhun has welcomed the decision by international ratings agency S&P Global Ratings to maintain Indonesia’s sovereign credit rating at BBB for the long term and A-2 for the short term, with a stable outlook. Misbakhun explained that the decision signals continued international confidence in Indonesia’s economic fundamentals amid high global uncertainty. He assessed that the government’s economic policies are still viewed as credible by international rating agencies. “S&P’s decision is good news. Indonesia remains trusted, and this shows that our fiscal discipline and economic resilience are still appreciated. This trust must be maintained and strengthened,” Misbakhun said in a written statement on Tuesday (14/7/2026). As is known, S&P Global Ratings on 13 July 2026 reaffirmed Indonesia’s credit rating at BBB for the long term and A-2 for the short term with a stable outlook. S&P assessed that the weakening of Indonesia’s fiscal and external indicators is temporary and has the potential to improve in the coming years. Misbakhun revealed that S&P’s decision to maintain the rating was supported by several factors, including strong economic growth prospects, relatively controlled government and external debt positions, banking sector resilience, and the government’s commitment to keeping the State Budget (APBN) deficit below 3 per cent of Gross Domestic Product (GDP). Therefore, he urged the government to continue maintaining the credibility of the APBN by strengthening state revenue and improving the quality of spending. In addition, debt management must be carried out prudently so that the fiscal space remains healthy and capable of supporting sustainable economic growth. “The deficit can be an instrument to support growth, as long as the fiscal quality is maintained. State spending must be selective, well-targeted, and truly have an impact on the real sector,” he said. Misbakhun assessed that a number of notes provided by S&P regarding fiscal and external pressures should be used as input to strengthen future economic policies. According to him, challenges such as rupiah exchange rate stability, high debt interest burdens, and global energy price pressures must be addressed through close coordination between the government, Bank Indonesia, the Financial Services Authority (OJK), and other relevant authorities. He also stressed that the trust given by S&P must be maintained through the continuation of the national economic reform agenda. Misbakhun mentioned that downstreaming programmes, improvements in natural resource governance, and strengthening the state revenue base must continue to be encouraged to bolster Indonesia’s fiscal and external resilience. “Our target is not merely to maintain investment grade. What we must build is an increasingly strong economic foundation so that Indonesia can move up a class. S&P’s trust must be answered with fiscal discipline, a stable rupiah, and state spending that truly drives the real sector,” Misbakhun said. Finally, according to Misbakhun, the rating affirmation from S&P is an important asset for Indonesia to maintain investor confidence and strengthen economic resilience amid various ongoing global challenges.