Jakarta (VNA) – International credit rating agency Standard & Poor's Global Ratings (S&P) has affirmed Indonesia's BBB long-term and A-2 short-term sovereign credit ratings with a stable outlook, reflecting confidence in the country's ability to maintain macroeconomic stability amid global economic uncertainty.
According to S&P, Indonesia's economic fundamentals remain solid thanks to prudent fiscal and monetary policies, political stability, relatively low public debt compared with other countries in the same rating category, and positive medium-term growth prospects.
S&P forecasts that Indonesia's economy will maintain annual growth of around 5% over the next two to three years, with growth projected at 5.1% in 2026. Gross domestic product (GDP) is projected to expand by 5.6% year-on-year in the first quarter of 2026, driven primarily by stronger domestic demand and investment. Indonesia's per capita income is also expected to rise to 5,200 USD this year.
Finance Minister Purbaya Yudhi Sadewa said in a statement on July 13 that S&P's decision to maintain Indonesia's investment-grade rating demonstrates the international financial community's continued confidence in the government's economic policies. He said the government will continue to maintain fiscal discipline, improve revenue collection efficiency, enhance the quality of public spending, and manage debt in a prudent and sustainable manner.
S&P also commended Indonesia's commitment to keeping the budget deficit below 3% of GDP, describing it as one of the pillars underpinning the credibility of the country's fiscal policy. In the first six months of 2026, budget revenue rose 21% year-on-year thanks to improved tax administration, higher taxpayer compliance and optimised revenue from natural resources.
The agency added that structural reform programmes, including the development of the mineral processing industry, more efficient management of state assets, and a stronger role for the Danantara National Investment Fund, will help boost growth, increase domestic value added and enhance the economy's competitiveness./.
