Jakarta: Moody's has affirmed Indonesia's Sovereign Credit Rating at Baa2 with a stable outlook, as announced on Thursday.
Referring to Moody's statement, key factors that contribute the affirmation are mainly continued economic resilience and preserved monetary and macroeconomic policy effectiveness.
The structural reform taken by the Government is also believed will support investment and export competitiveness.
On the other hand, revenue reforms and plan on fiscal normalization will support debt burden stabilization.
"Moody's affirmation on Indonesia's rating at Baa2 / stable outlook reflects the positive recognition of Moody's, as one of leading rating agencies in the world. Indeed, Indonesia's macroeconomic and financial system stability has been well maintained, as well as its medium-term economic prospect, which remain strong amid the build-up of external pressure. This has supported by the credibility of the policies and strong policy mix involving Bank Indonesia, the Government and related authorities. Going forward, Bank Indonesia will continue to monitor global and domestic economic developments closely, take the necessary policy measures to ensure macroeconomic and financial system stability, and continue the synergy with the Government to accelerate the national economic recovery," Governor of Bank Indonesia, Perry Warjiyo stated in a press release on Thursday.
Moody's expects that Indonesia's economic growth will return to its pre-pandemic level of 5.0% on average over the next two years.
This growth level is above the median for the Baa-rated peers of 3.7%.
The economic recovery is boosted by the direction and pace of structural reform, such as the Omnibus Law on Job Creation and Tax Harmonization Law, which aims to improve investment climate and increase revenue.
Moody's previously maintained Indonesia's Sovereign Credit Rating at Baa2 with a Stable outlook.
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