S&P maintains Indonesia credit rating, saying fiscal strains could be temporary
S&P Global Ratings has affirmed Indonesia's sovereign credit rating at BBB/A-2, citing stable economic management and fiscal discipline. The agency expects commodity price rebounds to help offset temporary fiscal pressures.
Why it matters
This affirmation signals continued investor confidence in Indonesia's economic stability despite regional fiscal concerns.
S&P expects Indonesia's government revenue to continue recovering this year, and its export receipts to rebound with higher commodity prices.
A general view of the city skyline of Jakarta, the capital city of Indonesia on Aug 5, 2021. (File photo: Reuters/Ajeng Dinar Ulfiana)
JAKARTA: Credit ratings agency S&P affirmed Indonesia's BBB/A-2 sovereign credit ratings on Monday (Jul 13), saying recent fiscal strains should be temporary and could be offset by stronger commodities prices and spending cuts.
Fellow ratings agencies Moody's and Fitch cut their debt rating outlooks for Indonesia to negative in February and March respectively, citing reduced policymaking credibility in the face of rising fiscal concerns under the stewardship of President Prabowo Subianto.
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