A positive surprise from Indonesia – S&P lifted rating to BBB

Credit rating agency S&P Global Ratings lifted Indonesia’s rating to ‘BBB’ from ‘BBB-‘ previously. According to S&P, rating was lifted due to stable economic situation, low debt levels, strong growth prospects and President Jokowi’s re-election for second term. In addition, future rating upgrades are possible if current account deficit improves.

Indonesia’s capital markets cheered S&P’s upgrade as JCI rose by +1.7% while the IDR gained nearly 1% vs the USD.

During first full week of June, Indonesia’s capital markets are closed due to country’s main holiday season of the year.