Stable Credit Rating Is Good Capital in Facing Uncertainty

Strive for a stable debt rating by ensuring that macroeconomic conditions are maintained, fiscal consolidation is ongoing, and tax reform measures are continuing to maintain the flow of state revenues.

KOMPAS/AGUS SUSANTO

Construction of the Cilincing Interchange on the Cibitung-Cilincing Toll Road project section 4 of the 7.29 kilometer Tarumajaya-Cilincing section in Cilincing, North Jakarta, Sunday (8/1/2023).

JAKARTA, KOMPAS — Indonesia's sovereign credit rating, which continues to have a stable outlook, is a good capital in facing global economic uncertainty. The government needs to remain proportional in issuing debt securities to maintain fiscal-management accountability and reduce the risk of increasing debt ratios and debt-interest expenses in 2023.

International-rating agencies have mostly maintained Indonesia's sovereign credit rating at a stable outlook. For example, on 14 Dec. 2022, Fitch Ratings (Fitch) affirmed Indonesia's Sovereign Credit Rating at BBB (investment grade) with a stable outlook due to the prospects for Indonesia's economic growth, which is still good in the medium term and the government's debt ratio, which remains in a safe level.