JAKARTA. Moody’s is said to maintain sovereign credit rating of Indonesia at Baa2 on April 16, 2024. This rating is one level higher than the investment grade, with a stable outlook.

The affirmation of said rating is deemed in line with Moody’s analysis regarding economic resilience of Indonesia, which is said to remain solid and show stable growth. In addition, Moody’s believes monetary and fiscal policies of Bank Indonesia and Indonesian government could promote national economic growth and resilience.

Perry Warijyo, Governor of Bank Indonesia, said that the rating affirmation from Moody’s shows international world’s trust in Indonesia’s economic stability and prospects. “In the future, Bank Indonesia will continue to observe economic development, as well as global and domestic finance, and decide policies that are required to ensure stability of macroeconomy and financial system,” he added.

In the most recent rating, Moody’s also projects average economic growth rate of Indonesia in 2024-2025 at approximately 5%. Although the growth is at the level before pandemic, said average is higher than other countries with Baa rating, which only grew approximately 3%.

For the record, the Indonesian government has currently committed to maintain deficit fiscal at below 3% of Gross Domestic Product (GDP). It is carried out in order to maintain government debt-to-GDP ratio lower than other countries with similar ratings. (KR/ZH)