Indonesia’s sovereign rating was affirmed by S&P.

• The long-term foreign currency rating is crucial for governments active in raising capital via global bond markets.
• S&P affirmed Indonesia at BBB. S&P retained a stable outlook.
• The key to the trajectory of Indonesia’s rating will be the government deficits.
• With projections for deficits around 3% of GDP, this is within this rating bands. However, a material decline in global commodity prices could negatively impact the country's finances.
• The recent appointment of Indonesia’s President’s nephew to the finance ministry has raised concerns as to the fiscal position for the sovereign and whether the prudence seen in recent years will continue.