S&P Global Ratings affirmed Indonesia's investment-grade rating at 'BBB' and maintained a stable outlook on July 13, 2026. This decision provides a positive signal for President Prabowo Subianto, particularly following a bond market selloff in June. The affirmation helps to stabilize the domestic bond market, as noted by Suminto, Indonesia's director general of budget financing and risk management.
This affirmation by S&P contrasts with earlier actions by other rating agencies. Moody's Ratings and Fitch Ratings had previously cut their outlook on Indonesia to negative earlier in 2026, citing concerns over governance under President Prabowo's administration, while keeping their ratings unchanged.
Despite the stable outlook affirmation, S&P had previously flagged potential risks. In February 2026, S&P warned that rising fiscal pressures, particularly higher debt-servicing costs, could lead to negative rating action if interest payments remained above 15% of government revenue. Furthermore, in April 2026, S&P indicated that Indonesia's sovereign rating would be particularly vulnerable to a prolonged Middle East conflict due to potential energy market disruptions.
