Fitch: Stable Outlook for Indonesia's Credit Rating, But with Warnings

Economic Growth

Fitch Ratings, the renowned credit rating agency, has once again upheld Indonesia's Sovereign Credit Rating at BBB level, a notch above the lowest investment-grade level, with a stable outlook. Fitch's decision, released on Mar. 15, considers Indonesia's promising medium-term economic growth prospects, well-controlled inflation within target ranges, and a low government debt-to-GDP ratio. Fitch anticipates that Indonesia's economic growth in 2025 will be driven by expectations of policy continuity after the 2024 General Elections.

In response to Fitch Ratings' decision, Bank Indonesia Governor Perry Warjiyo expressed that the BBB rating with a stable outlook reflects strong international stakeholders' confidence in Indonesia's macroeconomic stability and medium-term economic prospects, which remain intact after the 2024 General Elections. BI will formulate and implement necessary measures to preserve macroeconomic and financial stability. "It includes further adjustments in policy stance, as well as continuing to strengthen synergies with the government to support inclusive and sustainable economic growth," Perry stated in a written statement on Mar. 15.

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