S&P Global Ratings says Indonesia's push to centralize resource and mining
management and clamp down on tax leakages could gradually boost fiscal revenue
and export proceeds if policy execution improves. S&P describes Indonesia's
fiscal and external positions as weakened by high energy prices, rising interest
rates, rupiah depreciation, policy uncertainty and rising debt, but calls these
conditions temporary and expects improvement as commodity prices rise and the
government trims spending. S&P affirms Indonesia's long‑term sovereign rating at
BBB and expects the government to keep the fiscal deficit within the statutory
3% of GDP limit. Despite a strong Q1 GDP print of 5.6%, S&P projects growth of
5.1% for the year, citing ongoing external uncertainty and higher domestic
rates.
