Bank Indonesia (BI) Governor Perry Warjiyo views S&P Global Ratings' affirmation of Indonesia's sovereign credit rating at BBB with a stable outlook as a reflection of the continued confidence of international stakeholders in Indonesia's macroeconomic stability.
Furthermore, the affirmation from the rating agency is considered to reflect the continued confidence of international stakeholders in Indonesia's solid economic growth prospects.
BI also stated its continued commitment to strengthening the mix of monetary, macroprudential, and payment system policies to strengthen stability and contribute to sustainable economic growth.
Going forward, BI will also continue to strengthen policy coordination with the Government, including close synergy between monetary and fiscal policies to mitigate the impact of global uncertainty resulting from the war in the Middle East on the domestic economy, thereby maintaining economic stability and growth.
Policy synergy with the Financial System Stability Committee is also being strengthened to help maintain financial system stability and encourage financing for the Government's Asta Cita program.
This affirmation is supported by the expectation that the weakening of fiscal and external indicators is temporary and will improve as the direction and implementation of government policies become more stable.
The stable outlook reflects expectations that state revenues will continue to recover this year, while export revenues will increase as commodity prices improve.
Government policies to increase state revenue and export performance from the natural resources sector are also expected to support revenue growth in the medium term, especially if policy changes become more predictable and implemented effectively.
