Moody's: Indonesia bonds Baa3

Moody's Investors Service said it assigned a definitive Baa3 rating to the Government of Indonesia's bonds with scheduled maturity dates in 2023 and 2043. The outlook is stable.

The agency said Indonesia's Baa3 sovereign issuer rating incorporates a moderate assessment of the country's overall economic strength that balances robust growth performance against relatively low GDP per capita.

Prudent fiscal management has contained budget deficits at very low levels and has steadily reduced the government's debt burden as a share of GDP over the past decade, Moody's said. As a result, Indonesia's fiscal and debt ratios are now more favorably placed than many of its higher-rated peers, providing more fiscal headroom to respond to economic shocks.

Challenges to the rating include the relatively shallow depth of Indonesia's capital markets, manifested in fairly large non-resident ownership of government securities, Moody's said.

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