Indonesia's Energy Investment Opportunity slide image

Indonesia's Energy Investment Opportunity

BBB BBB- Investment Grade BB+ Below Investment Grade BB BB- Investment grade approved! S&P JCRA Moody's Fitch Ratings Fitch R&I B+ 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 BBB / Stable March 2019, Rating Affirmed at BBB/Stable The decision was supported by favorable GDP growth outlook on the back of resilient domestic demand and a small government debt burden compared with its peers. Indonesia's sovereign credit fundamentals should be resilient to substantial exchange rate volatility. S&P Global BBB / Stable Ratings May 2019, Rating Upgraded at BBB/Stable "We raised the ratings to reflect Indonesia's strong economic growth prospects and supportive policy dynamics, which we expect to remain following the re-election of President Joko Widodo recently." MOODY'S Apr 2018, Baa2, Rating Upgraded Baa2/ Stable "The upgrade to Baa2 is underpinned by an increasingly credible and effective policy framework conducive to macroeconomic stability. Together with a build-up of financial buffers, prudent fiscal and monetary policy strengthens Moody's confidence that the sovereign's resilience and capacity to respond to shocks has improved." R&I April 2019, Rating Affirmed at BBB/Stable BBB / Stable "Indonesia's economy is growing at a solid pace. The fiscal deficit to GDP ratio narrowed from a year earlier, and the government debt to GDP ratio remains low. While the CAD somewhat widened, foreign reserves are ample relative to short-term external debts. Its economic resilience to external shocks is maintained, supported by the government and central bank's policies emphasizing macroeconomic stability." JCR April 2019, Rating Affirmed at BBB, Outlook Revised to Positive BBB / Positive "The ratings mainly reflect Indonesia's solid economic growth underpinned by domestic consumption, restrained level of budget deficit and public debt, and resilience to external shocks stemming from flexible exchange rate policies and accumulation of foreign exchange reserves. The administration led by President Joko Widodo has formulated a large-scale infrastructure development plan and is vigorously promoting it to eliminate the infrastructure shortage. In addition, it has succeeded in expanding infrastructure expenditures and expenditures on human capital, and has been curbing the budget deficit by reducing fuel subsidies."
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