Moody's: Indonesia's Economy is still Beset by Structural Problems

International rating agency Moody's Investors Service has affirmed its stable rating outlook for Indonesian government debts and maintained local and long-term issuer ratings at Baa2. The Baa2 ratings also apply to senior unsecured bonds and medium-term notes while shelf registration programs are affirmed at (P) Baa2, respectively.

Baa2 rating means securities issued by the Indonesian government are rated in the lower-medium investment-grade category with moderate credit risk. The stable outlook illustrates that the rating position will be stable in the foreseeable future and shows a balanced risk.

In its official statement, Moody's affirmed the Baa2 rating for Indonesia due to the strengthening of several factors, including the stable rate of economic growth, low government debt burden, consistent fiscal discipline, and efforts to maintain macroeconomic stability.