Indonesia retains BBB credit rating as S&P cites fiscal discipline

S&P Global Ratings confirmed Indonesia’s sovereign credit rating at BBB for the long term and A‑2 for the short term on 13 July, with a stable outlook. The agency said the rating reflects the country’s fiscal discipline, low debt ratio and the expectation of 5 % annual growth over the next two to three years. Finance Minister Purbaya Yudhi Sadewa welcomed the decision and pledged to keep strengthening revenue, spending quality and prudent financing.

At the same time, Prof. Sylvia Veronica Narulita of the University of Indonesia urged policymakers to ensure that economic growth remains inclusive and environmentally sustainable. Speaking at the Islamic Congress in Jakarta, she warned that rising inflation and wealth inequality could push more people into poverty and highlighted climate change as a major risk to future productivity and health. She called for a balanced development model that protects the interests of future generations.