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Indonesia’s Finance Minister Purbaya Yudhi Sadewa has confirmed that Standard & Poor’s (S&P) maintained the country’s credit rating at BBB with a stable outlook following discussions in Washington D.C. On April 16, 2026. The minister described the news as “somewhat pleasing” during a press briefing after meetings with S&P representatives, emphasizing that the rating reaffirms Indonesia’s position within the investment-grade category.
According to Purbaya, S&P officials focused their discussions on fiscal conditions, particularly requesting details on this year’s and last year’s budget deficits and seeking assurance that Indonesia remains committed to keeping its deficit below 3 percent of GDP. He stated that President Prabowo has directed that the deficit be maintained under this threshold, a policy the government is consistently implementing.
The minister acknowledged S&P expressed some concern regarding debt service payments relative to revenue or tax income but explained that such risks remain manageable and are not at dangerous levels, citing ongoing improvements in tax and customs collection. He noted that organizational restructuring at the Directorate General of Taxes and the Directorate General of Customs and Excise has already been completed to enhance performance.
Purbaya highlighted recent tax growth as a positive signal, stating that tax revenue increased by 30 percent in the first two months of 2026 compared to the same period in 2025, and grew 20 percent in the January–March period year-on-year. He added that S&P representatives appeared satisfied with these developments during their discussions.
The BBB rating, categorized as “investment grade,” indicates a relatively low risk of default. Purbaya reiterated that Indonesia’s macroeconomic fundamentals remain strong, referencing earlier comments in March 2026 when he responded to Fitch Ratings’ downgrade of Indonesia’s debt outlook from stable to negative, asserting that the debt-to-GDP ratio remains within safe limits and projecting 5.11 percent economic growth for 2025.
He similarly confirmed plans to travel abroad in April 2026 to explain Indonesia’s fiscal policies, noting that this timing aligns with the International Monetary Fund and World Bank spring meetings in Washington D.C. Purbaya had previously stated he would not travel internationally before Indonesia’s economy achieves 6 percent growth but revised this stance due to the need to address international concerns about fiscal management.
The sustained BBB rating from S&P comes amid broader scrutiny of emerging market sovereign creditworthiness, following Fitch’s negative outlook adjustment in early March 2026. Purbaya’s engagement with global rating agencies reflects efforts to provide transparency and counter perceptions of fiscal risk, particularly as the new administration under President Prabowo establishes its economic policy framework.
Indonesia’s ability to maintain investment-grade status despite external pressures underscores resilience in its fiscal framework, supported by rising tax revenues and disciplined deficit management. The stable outlook from S&P suggests confidence in the government’s capacity to navigate global economic headwinds while preserving macroeconomic stability.
As of April 17, 2026, no further updates have been issued by S&P regarding Indonesia’s credit rating. The next scheduled opportunity for assessment will likely arise during the IMF and World Bank annual meetings later in 2026, where Indonesia’s fiscal performance will continue to be reviewed by international financial institutions.
For ongoing updates on Indonesia’s credit ratings and fiscal policy developments, readers are encouraged to follow official announcements from the Ministry of Finance and statements from major credit rating agencies.
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