Fitch: Indonesia’s Long-Term Foreign Issuer Default Rating Affirmed at BBB, Outlook Stable

Indonesia has had its Long-Term Foreign-Currency Issuer Default Rating (IDR) affirmed at BBB by Fitch Ratings (Fitch), with a Stable Outlook.

The rating affirmation takes into account a favourable medium-term outlook for economic growth, with Fitch forecasting Indonesia's gross domestic product (GDP) at 6.6% in 2021 and 5.5% in 2022, rebounding from an expected 2% contraction forecast for 2020.

The ratings also incorporate a low government debt-to-GDP ratio, with the general government debt burden anticipated to rise to 36.7% of GDP in 2020, from 30.6% of GDP in 2019, peaking at 39.1% of GDP in 2022. However, Fitch notes that this remains well below the BBB category median of 51.7%....