Indonesia sees S&P rating as boost to investor's confidence

Jakarta (ANTARA) - Indonesia said S&P Global Ratings' decision to affirm its investment-grade credit rating reinforces investor confidence, as the government seeks to sustain economic growth and strengthen fiscal credibility amid global uncertainty.

S&P on Monday affirmed Indonesia's long-term sovereign rating at BBB and short-term rating at A-2, both with a stable outlook.

"The decision reflects confidence in Indonesia's economic resilience. We must build on this momentum," Ferry Irawan, a deputy at the Coordinating Ministry for Economic Affairs, said on Tuesday.

The affirmation keeps Indonesia in the investment-grade category despite persistent global economic headwinds.

S&P forecasts Indonesia's economy will expand about five percent annually over the next two to three years, including growth of 5.1 percent in 2026 and an average of 4.9 percent during 2026-2029.

Ferry said the government will strengthen governance, transparency and domestic financial markets to preserve investor confidence.

"Good governance is not only about compliance. It strengthens institutional credibility, provides certainty for businesses and investors, and supports sustainable economic growth," he said.

S&P said Indonesia's rating could come under pressure if fiscal and external indicators weaken persistently.

Conversely, the agency said structural improvements in fiscal and external performance could support a future rating upgrade.

The government also cited positive assessments from other international institutions.

The International Monetary Fund projected Indonesia's economy would grow five percent in 2026, while the Asian Development Bank maintained its 2026 growth forecast at 5.2 percent.

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Translator: Shofi Ayudiana, Yashinta Difa

Editor: Rahmad Nasution

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