Indonesia's BBB Credit Rating Held by S&P Boosts Market Confidence

S&P Global Ratings affirmed Indonesia’s sovereign credit rating at BBB with a stable outlook on 13‑14 July 2026, noting the country’s fiscal discipline, solid macro fundamentals and projected growth of around 5 percent in 2026. Finance Minister Purbaya Yudhi Sadewa said the rating reflected the government’s prudent fiscal management and highlighted a recent meeting with S&P and investors in the United States. Bank Indonesia Governor Perry Warjiyo added that the affirmation shows continued confidence from international investors in Indonesia’s macro‑economic stability.

The rating news lifted sentiment on the Jakarta Stock Exchange: the IHSG opened up 0.33 percent at 6,057 points, and analysts expect further gains, citing the “stable outlook” as a catalyst. Foreign investors returned to Indonesian bank shares, buying large blocks of Mandiri, BCA and others. Market participants also noted heightened volatility from U.S.–Iran tensions, but the S&P rating was seen as a positive anchor for the domestic financial market.

S&P warned of lingering risks, including rising energy prices, a weak rupiah and higher debt‑service costs, and urged continued fiscal prudence. Nonetheless, the agency’s reaffirmation is expected to keep borrowing costs favorable and support Indonesia’s economic outlook.