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Fitch Ratings Rated Indonesia Remains Worth Investment Grade

Jakarta, 19/03/2019 Ministry of Finance - Debt rating agency Fitch Ratings released Indonesia's debt rating remained in BBB position with a stable outlook on March 14 2019. Indonesia's debt rating by Fitch has been included in the investment grade category since 2011 and increased to BBB ranking in December 2017.
Fitch reported that the level of the Government's low debt burden and good economic growth were the driving factors in achieving Indonesia's debt rating. Indonesia's debt burden compared to its peers is considered safer and the domestic financial sector is considered to be in a healthy condition.
The growth of Indonesia's Gross Domestic Product (GDP) is considered to be far better than its peers. Fitch believes that domestic demand and investment will continue to support Indonesia's economic growth performance.
Furthermore, Fitch stated that Indonesia has positive potential from the transfer of investment objectives in line with global economic situations and US monetary policy. Fitch believes that Indonesia's Sovereign Credit fundamentals will remain robust as the exchange rate movements and foreign exchange reserves remain stable.
The Indonesian government is considered to have implemented a good and appropriate fiscal policy so that Indonesia's fiscal healthy which is marked by a decrease in the State Budget (APBN) deficit from 2.51% in 2017 to 1.76% in 2018. This reduction in the State Budget deficit is driven by improvements in tax revenues and increased quality of spending. Careful fiscal policy is also indicated by Indonesia's low debt with a ratio of 29.8% to GDP in 2018.
Fitch's measure to maintain Indonesia's debt rating in the BBB position with the stable outlook shows that Indonesia's economy remains stable amid the weakening global economy. Structural and fiscal reforms carried out by the Government together with stakeholders are an effort to maintain the stability of the Indonesian economy. The Fitch announcement reflects that the Indonesian economy is still believed to remain robust by the international community amid the weakening global economy tension. (fr/nr)