BBB Long-Term Foreign-Currency Issuer Default Rating and Stable Outlook for Indonesia Affirmed by Fitch

Fitch Ratings (Fitch) has affirmed the Long-Term Foreign-Currency Issuer Default Rating (IDR) for Indonesia at BBB with a Stable outlook.

Ratings and Outlook Rationale

Indonesia’s economy is recovering from COVID-19, supported by government stimulus spending and net exports, including those from better commodity prices. Growth momentum should be aided in the near term by fiscal relief measures and infrastructure spending; however, downside risk persists from weak domestic demand as COVID-19 continues. Vaccinations commenced in January 2021, with herd immunity targeted by the first quarter of 2022. Over the medium term, the Omnibus Law on Job Creation should boost growth.

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