Japan Credit Rating Agency, Ltd. (JCR) has affirmed Indonesia’s Sovereign Credit Rating at BBB+ (investment grade) with a stable outlook, as announced today, July 27, 2022. According to JCR, key factors that support the decision are Indonesia’s solid domestic demand-led growth potential, restrained public debt, and resilience to external shocks supported by accumulation of foreign exchange reserves.

JCR expected the debt will gradually decrease as the fiscal balance improves mainly due to the increase in revenue due to positive growth and higher commodity prices, despite a relatively high dependence on natural resources and weaker revenue base.

In response to the decision, Governor of Bank Indonesia, Perry Warjiyo, stated that JCR’s affirmation on Indonesia’s rating at BBB+/stable outlook shows a strong international stakeholders confidence on the Indonesia’s maintained macroeconomic stability and medium-term economic prospects, amidst the risks on domestic economic growth posed by global economic moderation.