R&I Affirmed Republic of Indonesia’s Rating Two Level Above Investment Grade (BBB+) with a Positive Outlook

No. 26/213/DKom

Rating and Investment Information, Inc. (R&I) affirmed the Sovereign Credit Rating of the Republic of Indonesia at BBB+, two levels above investment grade, with a positive outlook as of September 30, 2024. R&I believed that Indonesia's favorable economic condition is expected to continue, encompassing Indonesia's growing economic fundamental, its resilience against external shocks, and managed fiscal deficit as well as low government debt ratio.

In response to the decision, Governor of Bank Indonesia, Perry Warjiyo, expressed that "R&I's affirmation of Indonesia's rating at BBB+/positive outlook reflects strong international confidence in the country's stable macroeconomic conditions and financial system stability, along with the promising medium-term economic outlook. This confidence is bolstered by the strong synergy between Bank Indonesia, Government as well as Financial Services Authority, supported by their credibility and well-coordinated policies. Looking ahead, Bank Indonesia will continue to monitor global and domestic economic and financial developments, taking necessary policy actions to maintain macroeconomic and financial stability, while continuing to enhance synergy with the Government to support continuous economic growth".

R&I views that Indonesia's economy is expected to remain solid in the second half of 2024, with the overall growth at around 5%, which still in line with Bank Indonesia's projection at 4.7%-5.5%. R&I also conveys confidence that price stability will be preserved, backed by Bank Indonesia's disciplined monetary policy and enhanced collaboration with the Government, particularly through the efforts of the Central Government and Regional Government Inflation Control Teams (TPIP and TPID). Externally, R&I expects that the current account deficit remains at a low level, which will likely hover at roughly 1% of GDP. From the fiscal perspective, the government is maintaining firm commitment to fiscal discipline at the outset of the new administration to the fiscal deficit below 3% of GDP.

On July 25, 2023, R&I upgraded the Republic of Indonesia's outlook to positive from stable and affirmed its Sovereign Credit Rating at BBB+ , indicating a rating two levels above the lowest of investment grade.

Jakarta, 30 September 2024

Head of Communication Department

Erwin Haryono

Assistant Governor​​