S&P signaled that they may delay a rating upgrade for Indonesia on the back of declining coal prices. The sharp decrease in coal prices has affected Indonesia economy over the past few year and pushed the rating agency to delay Indonesia’s rating upgrade from current top junk level. Back in 2015, S&P has raised Indonesia’s outlook to positive from stable meaning that it may be upgraded in the following 1-2 years. The narrowing deficit will remain key for the rating upgrade whereas the government will need to carry out some reforms in order for the deficit to narrow. Currently, S&P is the only big three rating agency after Fitch and Moody’s that did not yet place Indonesia in investment grade status.