Government Measures to Mitigate Covid-19 Risk slide image

Government Measures to Mitigate Covid-19 Risk

Indonesia Has Been Rated as Investment Grade Country since 2017 BBB+ BBB BBB- Investment Grade BB+ Below Investment Grade BB BB- Fitch Ratings BBB / Stable JCRA R&J August 2020, Rating Affirmed at BBB/Stable S&P Fitch Moody's B+ 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 R&I JCR BBB+ / Stable The affirmation of the rating is underpinned by a favorable medium-term growth outlook and a low government debt burden compared with "BBB" category peers. S&P Global Ratings BBB / Negative April 2020, Rating Affirmed at BBB, Outlook Revised from Stable to Negative "The affirmation reflects Indonesia's stable institutional settings, strong growth prospects, and historically prudent fiscal policy settings. The negative outlook reflects S&P expectation that Indonesia faces additional fiscal and external risks related to the COVID-19 pandemic in the next 24 months. MOODY'S "9 Baa2 Stable Feb 2020, Rating Affirmed at Baa2/Stable "The affirmation of the ratings is underpinned by a number of credit strengths including Indonesia's robust and stable growth rates and a low government debt burden, preserved by consistent fiscal discipline and emphasis on macroeconomic stability as well as persistent credit challenges." BBB+ / Stable March 2020, Rating Upgraded at BBB+/Stable "The upgrade reflects the firm implementation of policies to strengthen economic growth potential on the back of a solidified political foundation. As the global spread of the novel coronavirus could strain growth in the Indonesia economy, the government and the central bank are working to shore up the economy and maintain macroeconomic stability. Given the country's underlying economic strength which remains intact, R&I expects the economy to start to recover if the epidemic is brought under control" December 2020, Rating Affirmed at BBB+/Stable "The ratings mainly reflect the country's solid domestic demand-led economic growth potential, restrained public debt, and resilience to external shocks supported by flexible exchange rate and monetary policies and accumulation of foreign exchange reserves. Additionally, the government has been maintaining the momentum of economic structural reforms even amid the pandemic, as evidenced by the enactment of the "Omnibus Law on Job Creation". 27
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