Fiscal and Economic Growth Risks Threaten Indonesia's Rating

Indonesia maintains its Baa2 credit rating with a stable outlook thanks to stable macroeconomic indicators. However, worsening government debt metrics and slowing GDP growth may threaten this rating. Economists warn of potential challenges in meeting financial obligations if reforms to increase government revenue are not implemented. Moody’s emphasized the need to strengthen fiscal discipline, especially given the growing share of foreign debt, to safeguard the economy from further currency market turmoil. Despite the stable condition, financial organizations call on Indonesia for enhanced policy coordination and budget stabilization.