S&P keeps Indonesia at BBB, stable outlook amid fiscal strain
S&P sees Indonesia's fiscal pressure as temporary and still expects the budget deficit to stay below 3% of GDP.
S&P sees Indonesia's fiscal pressure as temporary and still expects the budget deficit to stay below 3% of GDP.
The FLPP rate stays flat until the loan ends, even after Bank Indonesia raised the BI-Rate 25 bps to 5.75%.
Perry Warjiyo still sees world growth at about 3% and inflation at 4.4% despite easing war tensions.
Why it matters: The move extends a 100-basis-point tightening push to steady the rupiah after it hit a record low this month.
The loan rebound followed April’s 9.98 percent pace, led by 21.95 percent investment lending and 13.47 percent DPK growth.
The scheme covers rupiah-renminbi trade payments for Indonesia-China commerce valued at US$154.5 billion in 2025.
New: Bank Mandiri joins CIPS directly, while 191 providers in China and 24 in Indonesia are linked for QR payments.
The rupiah strengthened to Rp18.058 per dollar and the IHSG jumped 7.57% after the benchmark rate increase.
The government also denied a cabinet reshuffle and pushed closer coordination among BI, Kemenkeu, OJK and DPR.
Government cash will remain at BI with higher remuneration to preserve money market and banking liquidity, officials said.