S&P affirms Indonesia’s BBB credit rating with a stable outlook, and Bank Indonesia (BI) has welcomed the decision by credit rating agency Standard and Poor’s (S&P) Global Ratings regarding Indonesia’s economic performance. The affirmation, issued on July 13, 2026, reflects the country’s continued position within the investment grade category.
S&P Affirms Indonesia’s BBB Rating on Solid Macroeconomic Fundamentals
Bank Indonesia Governor Perry Warjiyo stated that S&P affirms Indonesia’s BBB credit rating with a stable outlook, reflecting sustained confidence from international stakeholders in the country’s macroeconomic stability and solid economic growth prospects.
“This is supported by close policy synergy between the government and Bank Indonesia in strengthening stability and driving domestic economic growth amid continued high global uncertainty,” Perry said in an official statement received on Tuesday, July 14, 2026.
What the Stable Outlook Reflects
The stable outlook reflects expectations that state revenue will continue to recover this year, while export revenue is expected to rise alongside improving commodity prices. Government policies aimed at boosting state revenue and export performance from the natural resources sector are also expected to support medium-term revenue growth, particularly if policy changes become more predictable and are implemented effectively.
The stable outlook also reflects expectations that the government remains committed to keeping the fiscal deficit below 3% to maintain fiscal sustainability. This commitment is a key reason why S&P affirms Indonesia’s BBB credit rating as appropriate at this stage, rather than adjusting it in either direction.
Path Toward a Potential Rating Upgrade
Looking ahead, S&P could raise Indonesia’s sovereign credit rating further if structural improvements in fiscal and external indicators continue. On the fiscal side, this would be supported by a sustained reduction in the fiscal deficit through significant growth in state revenue, lower financing costs, and exchange rate stability.
On the external side, a rating upgrade would need to be supported by improving indicators, including a reduction in foreign debt and gross external financing needs. These are the benchmarks S&P will continue to monitor closely before considering any change beyond the current level where S&P affirms Indonesia’s BBB credit rating.
Bank Indonesia’s Policy Commitment Moving Forward
Bank Indonesia remains committed to strengthening its policy mix across monetary, macroprudential, and payment systems to reinforce stability and support sustainable economic growth. Going forward, Bank Indonesia will continue to strengthen policy coordination with the government, including close synergy between monetary and fiscal policy, to mitigate the impact of global uncertainty stemming from the conflict in the Middle East on the domestic economy.
“Policy synergy with the Financial System Stability Committee is also being strengthened to help safeguard financial system stability and support financing for the Asta Cita program,” Perry added.
Why This Rating Affirmation Matters for Indonesia’s Economy
A stable investment-grade rating from a major agency like S&P carries practical significance beyond government finances. It typically supports investor confidence, can help keep borrowing costs manageable for both the public and private sectors, and contributes to broader currency stability. The fact that S&P affirms Indonesia’s BBB credit rating at this stage signals that international markets continue to view Indonesia’s macroeconomic fundamentals as resilient, a factor that also influences the exchange rate environment for businesses and individuals conducting cross-border transactions.
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