JAKARTA – Indonesia managed to keep its Sovereign Credit Rating at “Baa2,” above investment grade, with a stable outlook. This rating is granted by an international rating agency, Moody’s.
Perry Warijyo, Governor of Bank Indonesia (BI), claimed that the said rating represents a positive affirmation given by Moody’s to Indonesia. “The medium-term economic prospects are still solid, and the stability of the macroeconomy and financial system of Indonesia is well-sustained, even amidst this unstable global economy,” he further stated in a press release quoted Friday (11/2).
According to Warijyo, the said rating agency saw the monetary and macroeconomic policies implemented in the middle of a structural reformation had helped promote investments and export competitiveness. Furthermore, the tax reformation, through the harmonisation of several regulations and normalisation of fiscal policies, was also deemed supportive towards maintaining the government’s debts.
It was mentioned that BI would observe the progress of the global and domestic economy in order to design a policy that could ensure the stability of the macroeconomy and financial system.
On February 10, 2022, Moody projected the government’s debt expenses would increase to 42.5% of 2021 GDP. However, this position is still lower than debts owned by other countries with a “Baa” rating, which might reach 64% of GDP. The “Baa2” rating indicates that the government securities possess moderate credit risk and are categorised as a medium grade. (LK/ZH)