S&P Maintains Indonesia's Credit Rating, Purbaya Says Economy Remains Resilient
The decision by S&P to maintain Indonesia’s rating at investment grade with a stable outlook shows that the direction of national economic policy remains credible.
Jakarta (ANTARA) — Finance Minister Purbaya Yudhi Sadewa has said the decision by the international rating agency Standard & Poor’s Global Ratings (S&P) to maintain Indonesia’s credit rating at BBB for the long term and A-2 for the short term with a stable outlook reaffirms international confidence in the resilience of the Indonesian economy amid global uncertainty.
In his remarks in Jakarta on Monday, Purbaya said the rating affirmation shows that Indonesia’s economic fundamentals remain strong even as the world faces pressures from high global interest rates, financial market volatility and fluctuations in energy prices.
“S&P’s decision to maintain Indonesia’s rating at investment grade with a stable outlook shows that the direction of national economic policy remains credible. The government continues to maintain fiscal discipline, strengthen the state revenue base, improve the quality of spending, and ensure that financing is managed prudently, efficiently and sustainably,” Purbaya said.
S&P expects Indonesia’s economic growth to remain at around 5 percent over the next two to three years. In 2026, economic growth is projected to reach approximately 5.1 percent.
The Finance Minister said that in the first quarter of 2026, the Indonesian economy grew 5.6 percent year on year, driven by robust domestic demand and increased investment activity.
S&P also gave a positive assessment of the government’s commitment to keeping the state budget deficit below 3 percent of gross domestic product (GDP). This commitment is regarded as a policy anchor that strengthens the credibility of Indonesia’s fiscal policy.
The rating agency also noted an increasingly strong recovery in state revenue.
State revenue in the first half of 2026 grew by around 21 percent compared with the same period the previous year, supported by strengthened tax administration, improved taxpayer compliance and optimisation of non-tax state revenue (PNBP), particularly from the natural resources sector.
Purbaya said the government will continue to improve the quality of the state budget through strengthening taxation and PNBP, boosting compliance and digitising tax administration.
In addition, the government is optimising revenue from the mineral and natural resources sectors, improving the effectiveness and targeting of state spending, managing financing efficiently and controlling debt risk.
In its report, S&P judged that the various structural reforms currently being pursued by the government have the potential to strengthen economic growth in the medium term.
S&P also assessed that strengthening the role of Danantara and the management of export proceeds in foreign exchange could improve the efficiency of state asset management, strengthen transparency, reduce economic leakages and support financing for investment in strategic sectors.
“The government ensures that this entire reform agenda is implemented transparently and accountably, accompanied by consistent policy communication, so as to maintain the confidence of the business community and investors,” Purbaya explained.
Furthermore, S&P judged that Indonesia’s banking system continues to have a strong level of capitalisation, with limited contingent risks for the government.
The Finance Minister views the stable outlook as reflecting S&P’s confidence that the challenges facing Indonesia’s fiscal and external sectors are temporary and will improve as state revenue recovers, commodity prices stabilise, the exchange rate strengthens and economic reforms are implemented more effectively.
“This credit rating affirmation also strengthens Indonesia’s position as one of the countries with solid economic prospects in the region, and sends a positive signal to global investors that Indonesia remains a credible, safe and promising long-term investment destination,” he said.