According to Fitch, key factors that support the affirmation are Indonesia's favorable medium-term growth outlook and low, but rising, government debt/GDP ratio.
On the other hand, Fitch underscores challenges including a high dependence on external financing, low government revenue, and lagging structural features such as governance indicators and GDP per capita compared with other 'BBB' category countries.
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In response, Governor of Bank Indonesia, Perry Warjiyo stated that,
"Fitch's affirmation on Indonesia's rating at BBB/stable outlook reflects the acknowledgement of Fitch, as one of leading rating agencies in the world, for Indonesia's macroeconomic and financial system stability that is maintained as well as medium-term economic prospects which remain strong amid uneven global economic recovery and uncertainty in global financial market," Bank Indonesia (BI) Governor Perry Warjiyo said in a press release on Tuesday.
"This supported by the credibility of the policies and strong coordination of policy mix between Bank Indonesia and the Government. Going forward, Bank Indonesia will continue to closely monitor global and domestic economic developments, 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,"
Following the ease of Covid-19 cases after the high resurgence during June to August 2021, Fitch foresee Indonesian economy in 2021 have the potential to grow higher compare to their 3.2% forecast, supported by recovery of mobility and high export commodity prices.
Fitch also forecast growth will accelerate to 6.8% in 2022, and remain at around 6% over the next few years, supported by the impact of Omnibus Law on Job Creation implementation on investment.
Fitch previously maintained Indonesia's Sovereign Credit Rating at BBB with a Stable outlook on March 22, 2021.