Rating agency Fitch said that recent Indonesian policies, including the subsidized fuel hike, are a move toward cooling the economy and achieving sustainable growth.

Fitch in a press statement said that “Our assumption that the authorities would manage policy along broadly appropriate lines is one of the factors that supported Indonesia's upgrade to 'BBB-' in December 2011.”

The rating agency said that “This assumption remains an important element in our credit assessment. Indonesia's sovereign credit profile has benefited from stronger and less volatile economic growth than its 'BBB' range peers.”

Fitch added that delivering a macroeconomic policy mix that delivers sustainable growth was important. Inflation and current account deficit developments suggest that growth might stand at about 5.5% to 6%.

Fitch also acknowledged Bank Indonesia’s recent policy to raise its benchmark interest rate by 25 basis points to six percent as an attempt to address potential economic overheat, driven by loose monetary policy and credit conditions.