S&P keeps Indonesia at BBB, stable outlook amid fiscal strain

S&P Global Ratings kept Indonesia's long-term credit rating at BBB and its short-term rating at A-2, with a stable outlook. The decision preserves Indonesia's investment grade status amid market concerns over a weaker rupiah and fiscal pressure early in President Prabowo Subianto's administration. S&P said recent fiscal pressure and external indicators are likely temporary, supported by the potential for higher commodity prices, a rebound in state revenue and adjustments to government spending. It also said the commitment to keep the annual deficit below 3% of GDP remains an important policy anchor. Bank Indonesia said the affirmation reflects global confidence in macroeconomic stability, while S&P warned the rating could be lowered if government debt, interest costs or external financing needs worsen sharply.