Fitch Ratings has on Wednesday (July 19) affirmed the investment grade for Indonesia. The country’s Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) is affirmed at ‘BBB-‘ with a Positive Outlook. Indonesia’s ratings balance a low government debt burden, favourable growth outlook and limited sovereign exposure to banking-sector risks with weak – but strengthening – external finances compared with ‘BBB’ category peers and some lagging structural factors, including governance standards and a still difficult – but improving – business environment. The Indonesian authorities have continued to strengthen their macroeconomic policy record with a focus on macro stability and sustainable growth since Fitch revised Indonesia’s Outlook to Positive from Stable in December 2016.
