Credit rating agency Fitch Ratings has affirmed Indonesia Sovereign Credit Rating at BBB- with a Positive Outlook.
The major rating drivers were low government debt burden, positive outlook for growth and limited sovereign exposure to banking-sector risks with weak – but strengthening – external finances and some lagging structural factors and a still difficult – but improving – business environment, Fitch says in a press release.
Fitch says that Bank Indonesia monetary exchange-rate policies and slowdown in the fast rise in corporate external debt have supported a further increase in Indonesia’s external finances.
Moreover, Credible GDP growth assumptions in the revised budget for 2017 and strong structural reform were also appreciated by Fitch. It says that the two factors have gradually improved the business climate.
On the other hand, Fitch notes an upside risk in the coming years of the government policies, including the tax amnesty program, reporting requirements and international automatic exchange of information negotiation.
Bank Indonesia Governor Agus D.W. Martowadojo said that affirmed Indonesia’s credit rating may help support the country in preserving investors and other stakeholders’ confidence. He said that the momentum must be kept up in a bid to maintain a balanced economic growth amid continued uncertainty in the global economy.
Before affirming Indonesia Sovereign Credit Rating at BBB- with Positive Outlook, Fitch granted Indonesia SCR with a stable outlook. The latest decision also affirmed the BBB- ratings issued on Indonesia on December 21 last year.