Jakarta. The government welcomes S&P Global Ratings’ decision to affirm Indonesia’s ‘BBB’ long-term and ‘A-2’ short-term sovereign credit ratings with a stable outlook.

The agency said that the sovereign rating continues to be supported by robust economic growth prospects, prudent macroeconomic management, and relatively low government and external debt compared with similarly rated peers.

In a press statement, senior minister Airlangga Hartarto said this reflects the international community's confidence in the “consistency and credibility” of the government’s economic policies.

"Amidst increasing global uncertainty, Indonesia has been able to maintain growth at around 5%, maintain fiscal discipline with a deficit below 3% of GDP, and strengthen governance in the natural resources sector,” Airlangga said.

This gives a positive signal to investors that Indonesia’s economic fundamentals remain solid. S&P projects Indonesia's economy to grow by around 5% annually over the next two to three years, with real growth projected at 5.1% in 2026 and an average of 4.9% in the 2026–2029 period. 

The 5.6% year-on-year growth achieved in the first quarter of 2026 also served as a positive catalyst, driven by government spending and accelerated budget disbursement. Indonesia's GDP per capita is estimated to hit roughly $5,200 in 2026.

The agency named the 3% budget deficit ceiling as a key anchor for a stable outlook. Nontax revenue, particularly royalties and levies on the resource sector, is also recovering strongly due to the general increase in commodity prices. On Indonesia’s decision for a one-gate export system, the agency sees the move as a potential booster to state revenue and export earnings.

Jakarta has set up Danantara Sumberdaya Indonesia (DSI) to curb misinvoicing and transfer pricing practices. Indonesia has also required natural resource exporters to park their foreign exchange proceeds.

S&P also views Bank Indonesia as having maintained operational independence and contained price pressures “generally well” since the early 2010s.

“The government remains committed to maintaining macroeconomic stability while encouraging transformation by moving up the value chain, strengthening export proceeds management, and boosting productivity,” Airlangga said.

“Policy consistency and predictability will be key to boosting Indonesia's ranking to a higher level.”

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