Moody’s Reaffirms Indonesia’s Sovereign Credit Rating at Baa2 with Stable Outlook

JAKARTA, investortrust.id — Moody’s Investors Service has reaffirmed Indonesia’s sovereign credit rating at Baa2 with a stable outlook, underscoring the nation’s solid economic fundamentals and policy credibility amid global market volatility. The credit rating update was released on Thursday, March 20, 2025, as part of Moody’s periodic review.

Moody’s cited Indonesia’s strong domestic demand—especially household consumption and investment—as the primary engine of growth for 2025 and 2026. The agency noted that policies aimed at enhancing the competitiveness of the manufacturing and commodity sectors are expected to contribute to sustainable growth and higher income levels.

The report also recognized Indonesia’s vast natural resource endowment and favorable demographics as long-term growth assets. Furthermore, Moody’s praised the country’s fiscal and monetary authorities for maintaining macroeconomic stability through credible policymaking.

Finance Minister Sri Mulyani Indrawati welcomed the assessment, stating that it reflects the government’s consistent efforts in maintaining both economic and fiscal stability.

“The government remains committed to strengthening Indonesia’s economic foundation and ensuring inclusive and sustainable growth,” Sri Mulyani said in an official statement on Friday, March 21, 2025.

Despite global challenges such as potential trade tensions, Moody’s expects Indonesia’s debt burden to remain stable and low relative to its economy and regional peers. While fiscal pressures remain, particularly in optimizing state revenue, the agency considers the situation to be well-managed.

Moody’s also indicated that a future rating upgrade is possible if Indonesia succeeds in significantly improving the size and global competitiveness of its manufacturing and commodity sectors.

Both the government and Bank Indonesia reaffirmed their commitment to managing inflation, supporting consumer purchasing power, stabilizing the rupiah exchange rate, and sustaining the momentum of economic recovery amid evolving global risks.

Bank Indonesia Governor Perry Warjiyo also highlighted the significance of Moody’s decision as an international vote of confidence.

“Moody’s trust in Indonesia’s economic resilience is a positive indicator of global confidence in our solid fundamentals, despite high global financial uncertainty,” said Perry.

Chairman of Indonesia’s Financial Services Authority, Otoritas Jasa Keuangan or OJK, Mahendra Siregar, emphasized that the rating reaffirmation reflects international confidence in the strength of Indonesia’s economic fundamentals and the stability of its financial sector.

“This is proof that our consistent policy measures can maintain stability amid global dynamics. We hope Moody’s periodic review will further strengthen investor confidence in Indonesia’s economic outlook,” said Mahendra.

He added that OJK continues to focus on ensuring a healthy, inclusive, and competitive financial services ecosystem as part of its 2025 strategic priorities. As part of capital market deepening, OJK is also committed to adopting measured policy responses in line with current market conditions.

“Investor and market confidence is our key capital moving forward,” Mahendra stated.