Indonesia avoided a rating outlook cut by S&P Global Ratings, giving a reprieve to President Prabowo Subianto and his fiscal policy credibility. The decision follows recent economic data and policy measures that show improved fiscal discipline.

S&P had considered downgrading Indonesia's outlook due to concerns over fiscal deficits and external vulnerabilities. However, the agency cited improvements in the budget deficit, growth prospects, and debt management, keeping the outlook stable.

The outcome is significant for Indonesia's financial markets, maintaining investor confidence and keeping borrowing costs lower. It also reflects confidence in Prabowo's leadership and the government's economic strategy.

Analysts note that the rating agency will monitor future fiscal performance and external shocks, and that the outlook could shift if conditions deteriorate in 2024.