Fitch Rating Reflects Indonesia’s Solid Macroeconomic Outlook: BI

RRI.CO.ID, Jakarta - Bank Indonesia (BI) has responded to the latest report by rating agency Fitch Ratings on Indonesia’s sovereign credit rating, which assesses a country’s creditworthiness and default risk in meeting long-term debt obligations.

In a report released on Wednesday, March 4, 2026, Fitch maintained Indonesia’s sovereign credit rating at BBB while revising the country’s credit outlook to negative.

The affirmation of the BBB rating reflects Indonesia’s stable and solid macroeconomic outlook. The government’s debt-to-gross domestic product (GDP) ratio remains relatively low, supported by adequate external resilience.

The negative outlook revision reflects Fitch’s view of policy uncertainty in Indonesia, as well as concerns about the consistency and credibility of the country’s policies.

Responding to the report, BI Governor Perry Warjiyo said the rating affirmation reflects global confidence in Indonesia’s strong economic fundamentals. He added that the negative outlook does not indicate a weakening of those fundamentals.

“Indonesia’s economic prospects remain strong, as reflected in solid domestic economic growth amid global uncertainty,” Perry said. “Inflation remains under control, including core inflation, which remains low, and the rupiah exchange rate continues to strengthen.”

He added that financial system stability remains intact, supported by adequate liquidity. Bank capitalization also remains high, while credit risk stays low.

According to Perry, Indonesia’s economic growth is supported by the widespread digitalization of payment systems, stable infrastructure, and a healthy industrial structure.

“Indonesia’s economic growth in the medium term is expected to remain solid and show an upward trend,” he said.

BI estimates Indonesia’s economic growth this year will range between 4.9 percent and 5.7 percent. Inflation is also expected to remain under control in line with the target of 2.5 ±1 percent.

External resilience remains strong, supported by Indonesia’s solid balance of payments and stable trade balance performance. The country’s foreign exchange reserves at the end of January 2026 remained high at USD 154.6 billion.

The amount is equivalent to 6.3 months of imports, or 6.1 months of imports and government external debt payments. This level remains above the international adequacy standard of around three months of imports.

“We will continue to strengthen the policy mix to maintain macroeconomic and financial system stability, encourage economic growth, and strengthen policy communication to maintain market confidence,” Perry said. (Gusti Panji/Lasti Martina)