S&P Keeps Indonesia at BBB, Stable Outlook

S&P Global Ratings kept Indonesia's credit rating at BBB with a stable outlook, preserving the country's investment-grade status. The decision was viewed positively because it can support investor confidence and help keep government borrowing costs under control amid global uncertainty. CORE Indonesia economist Yusuf Rendy Manilet said the news is positive, but stressed that the rating was only maintained, not upgraded. He noted that S&P still sees relatively strong economic growth, prudent macro policy and a low government debt ratio. However, S&P also pointed to a narrow revenue and export base, still-low per capita income and a financial sector that is not yet deep enough. Finance Minister Purbaya Yudhi Sadewa said the government will maintain fiscal discipline and broaden the tax base using data and technology.