S&P Global Ratings maintained Indonesia’s BBB sovereign rating with a stable outlook, citing fiscal discipline despite currency and bond yield pressures.
S&P Global Ratings affirmed Indonesia’s BBB sovereign credit rating with a stable outlook, highlighting fiscal discipline and adherence to a 3% budget deficit ceiling. The agency views recent fiscal and external deterioration as temporary but flags a weaker Indonesian Rupiah (IDR) and higher bond yields as headwinds.
Earlier this year, Fitch Ratings and Moody’s downgraded their outlooks on Indonesia. S&P’s decision contrasts with those moves, emphasizing the country’s track record of fiscal stability across administrations. Commodity price trends and policy adjustments are expected to support recovery.
USD/IDR approached record highs despite Bank Indonesia’s pledge to stabilize the currency. The central bank’s operational independence was noted as comparable to regional peers, though the rating affirmation removes a potential downside risk rather than acting as a positive catalyst.