Indonesia's BBB credit rating held as foreign debt nears $444 billion

S&P Global Ratings affirmed Indonesia's sovereign credit rating at BBB with a stable outlook, saying the country’s fiscal strains from high energy prices, a weak currency and higher debt are temporary and that revenue and export receipts are expected to recover. The agency noted that the rating reflects continued investor confidence in Indonesia’s macro‑economic stability.

Bank Indonesia reported that foreign debt (ULN) rose to US$444.4 billion (about Rp8 trillion) in May 2026, a 2.1% year‑on‑year increase driven chiefly by public borrowing. Finance Minister Purbaya Yudhi Sadewa said the debt level remains safe, with the debt‑to‑GDP ratio around 40%, well below the 60% Maastricht threshold, and compared favourably with many advanced economies. The government stresses that the nominal debt figure alone does not determine fiscal health.

Domestically, the Jakarta Stock Exchange (IHSG) opened higher, up about 0.24% to 6,056, led by gains in energy, consumer non‑cyclical, finance and property stocks. Meanwhile, rising global oil prices amid renewed US‑Iran tensions could pressure the state budget and fuel prices, but officials stress that the impact on the overall fiscal outlook is limited.