S&P Makes Downward Revision of Indonesia’s Credit Rating Outlook

S&P Global Ratings (S&P) has revised Indonesia’s Credit rating outlook to ‘Negative’ from ‘Stable’, citing the emerging financial risk faced by Indonesia as the country has stepped up its government spending to cushion the impact of COVID-19.

According to S&P, the downgrading of Indonesia’s credit rating has been triggered by the weakened external position of the country following a considerable depreciation of the IDR. In addition, S&P has cited that the government’s debt burden will be significantly higher over the next few years as a result of strong counter-cyclical fiscal measures.

Meanwhile the Governor of Bank Indonesia (BI), Perry Warjiyo, stated that S&P’s r...