RATING AGENCIES
In February 2020, rating agency Moody’s Investor Service affirmed Indonesia’s Sovereign Credit Rating at Baa2 with a stable outlook. Key factors that supported the affirmation were a robust and stable growth rate and a low government debt burden, preserved by consistent fiscal discipline and emphasis on macroeconomic stability. Standard & Poor’s credit rating for Indonesia in April 2020 stands at BBB with a negative outlook, while Fitch’s credit rating for Indonesia was last reported at BBB with a stable outlook.
RATING
BBB
OUTLOOK: STABLE
RATING
Baa2
OUTLOOK: STABLE
RATING
BBB
OUTLOOK: NEGATIVE
PROJECTIONS ON THE INDONESIAN ECONOMY
Indonesia’s economy is on the rise, helping the country take its rightful position as a major destination for foreign direct investment (FDI). Indonesia is entering a “sweet spot” as a convergence of its young, working population with that of relatively stable inflation and sustained economic growth, which in turn is fuelling overall consumer spending. Finally, the country’s resilience during the global financial crisis illustrates the merits of its immense population and economic self-reliance, demonstrating how these factors buck the trend of most other G20 economies.