JAKARTA - Moody’s Investors Service has awarded a Baa2 rating for Indonesia’s sovereign credit with a stable outlook on Monday (10/2).
In an official statement, Moody’s writes that the key factor that supports the rating is Indonesia’s strong and stable economic growth and low government debt maintained through fiscal discipline consistency and an emphasis on macroeconomic stability.
In addition, Indonesia’s GDP of over US$1 trillion dollar and population of over 260 million are also able to support the country’s economic resilience against pressure. Continuous economic reforms are also considered able to gradually resolve various challenges such as Indonesia’s economic structure and legal structure and regulations that still need to be clarified.
According to Bank Indonesia (BI) Governor Perry Warjiyo, the rating confirms the confidence of international stakeholders in Indonesia’s economic prospect amid various global and domestic challenges.
“The positive economic prospect is a result of a consistent policy mix synergy between Bank Indonesia and the government in maintaining macroeconomic stability and driving the momentum of economic growth,” said Mr Warjiyo in an official statement, Wednesday (12/2).
Going forward, BI will continue monitoring global and domestic economic development in using an accommodative policy mix to keep Indonesia’s inflation rate under control, maintain external stability, and support the momentum of economic growth. (MS)