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.
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.
The world‘s largest archipelagic country
with approximately 17,000 islands, and occupies a strategic location along major sea-lanes between East- and West-Asia.
The world’s 4th most populous country
with a population just under 250 million which is just below the population of China, India and the US. It is home to a 135 million consumer class, a sign of a growing middle- and upper-class with high purchasing power.
The largest economy in Southeast Asia
and its only member of the G20. Due to strong economic and demographic Indonesian potential, Standard Chartered projects Indonesia will be part of the G7 by 2040. It is also predicted to be the fifth largest economy in the world by 2030.
despite the country’s vast cultural diversity, which empowers it with agility and flexibility to meet future.
National motto: “Unity in diversity”
245 national strategic infrastructure projects
covering six development regions, building new airports and seaports across the country as the gates for trade and tourism. The country is also improving electrical capacity with an additional 35.000 MW
10 “New Balis” plan
that aims to replicate the economic effects of tourism in Bali nationally in areas such as Mandalika in Lombok and Lake Toba in North Sumatra.
High investment incentives
such as ease-of-doing business are set to attract more foreign direct investment.
Rich in natural resources
and ready to produce goods for global markets.