TEMPO.CO, Jakarta - Standard and Poor's or S&P maintains Indonesia's Sovereign Credit Rating at BBB (negative outlook) on 22 April 2021. The ratings are based on Indonesia's strong economic growth prospects and authorities' prudent policies.

"On the other hand, S&P also stated that the fiscal risks and external risks related to the Covid-19 pandemic need attention," Bank Indonesia stated in a written statement, Thursday, April 22.

Bank Indonesia governor Perry Warjiyo said that S&P's outlook for Indonesia shows that international stakeholders have strong confidence in Indonesia's macroeconomic stability and medium-term economic prospects amidst the ongoing Covid-19 pandemic.

"This is supported by the credibility of policies and strong synergies of policies between Bank Indonesia and the Government," Perry remarked.

In 2020, Indonesia's economy was contracted 2.1 percent, relatively small compared to other countries in the region. The government's fiscal policy response, as well as measured mobility restrictions as a response to Covid-19 situations, are seen as able to reduce the pandemic's negative impact on the economy.

The S&P predicts that Indonesia's economic growth recoveries will improve in 2022, as the vaccination program accelerates and economic activities return to normal gradually.

Read: Jokowi: Covid-19 Handling Is Key to Positive Economic Growth

Muhammad Hendartyo