In a statement on Friday, the ratings agency S&P increased the Southeast Asian nation’s sovereign credit rating to “BBB”, a rise from its previous “BBB-“ rating. The organization credits this raise to Indonesia’s promising economic growth prospects in conjunction with the current administration’s “supportive policy dynamics”.
S&P states that it expects Jakarta’s increased rating to continue following the re-election of President Joao Widodo. S&P’s confidence in President Widodo stem from his continued investment in infrastructure, as well as the Indonesian government’s low debt and moderate fiscal performance.
The S&P’s decision to increase Indonesia’s sovereign credit rating followed the prior decisions of two other leading ratings agencies: Fitch and Moody’s. Both of the other increases were also based on the country’s steady economic growth as a cause of sustainable structural reforms made by Indonesian authorities. This increase in rating by S&P positively benefited the economy, with the rupiah strengthening by 1% after the agency’s statement of Friday.
