Fitch Ratings has affirmed Indonesia’s long-term foreign-currency issuer default rating (IDR) at ‘BBB’ with a stable outlook, according to its latest credit assessment report on Friday (Jan 24). While the country’ gross domestic product (GDP) growth to marginally accelerate to 5.1% in 2020 and 5.3% in 2021 from 5.0% in 2019, significantly higher than the ‘BBB’ category median of 2.8% for 2019.

“Indonesia’s rating balances a favorable medium-term growth outlook and a small government debt burden,” it said, noting the country’ growth is likely to remain resilient in the next few years, underpinned by a renewed public infrastructure push and reform agenda during the second term of President Joko Widodo.

Domestic demand in 2020 is likely to be supported by some monetary policy easing, while the contribution to the growth of net exports may continue to be negatively affected by a weakened terms-of-trade, the report said.