VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

International rating agency -Standard & Poors (S&P) maintained Indonesia's sovereign credit rating on BBB- / A-3 with a stable outlook. Through its press release issued on last Thursday (31/5), the agency affirmed that  Indonesia's ratings remain at an investment grade level. Some of the key factors supporting the decision are relatively low government debt burden, moderate fiscal performance and moderate foreign debt levels. The ratio of government debt to gross domestic product -GDP in the next few years is projected to remain stable. It reflects stable global demand and higher commodity prices. The rupiah's flexibility and prudent policy in managing corporate short-term foreign debt risk have driven the decline in the external financing need ratio to current account receipts (CARs). The risk of deterioration in external financing costs facing Indonesia has declined significantly. In addition, the formulation of Indonesian policy is considered effective in supporting sustainable government finance and balanced economic growth. To support purchasing power and consumption, the government is taking steps to curb rising oil and electricity prices. These efforts are considered temporary and the momentum of reform will strengthen again. In particular, Bank Indonesia –BI is seen as playing a major role in maintaining economic growth and reducing pressure on the economy and financial markets. Meanwhile, Governor of BI, Perry Warjiyo said that maintaining Indonesia's rating by Standard and Poor's at "BBB- / A-3 " or Investment Grade at a stable outlook is a reflection of Indonesia's good economic fundamentals and a credible domestic economic policy. He also said that the ratings of Standard and Poor's further strengthen investors’ confidence in Indonesia's economic outlook amid continuing global uncertainty. Perry Warjiyo  added that in connection with the ratings’ affirmation, inter-authority coordination will continue to be strengthened. This is to maintain macroeconomic stability and promote growth.