The Indonesian Industrial Estate Association (HKI) says Fitch\nRatings\u2019 decision to downgrade Indonesia\u2019s debt outlook from stable to\nnegative is a serious signal that governments should not ignore. HKI\nChairman Ahmad Maruf Maulana said the negative outlook is not merely a\ntechnical rating by the rating agency.<\/p>\n
According to Ahmad, the downgrade serves as a warning to the\ngovernment that the global market is increasingly seeing policy\nuncertainty. \u201cIf it is not promptly responded to with clear corrective\nsteps, the impact could be felt directly on industrial investment,\nproject financing costs, and investor confidence,\u201d he said in a\nstatement received on Sunday, 8 March 2026.<\/p>\n
HKI said Indonesia\u2019s industrialisation is currently at a highly\npivotal phase. In particular, several strategic manufacturing sectors\nsuch as electronics, renewable energy, batteries, and processing-based\nindustries require long-term investments of very high values. In such\nconditions, policy stability, regulatory consistency, and credibility of\neconomic governance become key factors in attracting and retaining\ninvestment.<\/p>\n
According to HKI, shifts in the country\u2019s risk perception could\ndirectly result in higher cost of capital for industrial projects.\n\u201cGlobal investors tend to delay or reassess expansion plans when they\nsee macroeconomic policy uncertainty,\u201d Ahmad said.<\/p>\n
HKI also urged the government to take concrete steps to restore the\ncredibility of the national economic policy. Ahmad said investors need\ncertainty that Indonesia\u2019s economic policy is stable and predictable. He\nwarned that if this negative signal is not addressed promptly, Indonesia\nrisks losing the momentum of industrialisation being built.<\/p>\n
Finance Minister Purbaya Yudhi Sadewa previously said Indonesia\u2019s\nmacro indicators still showed safe conditions despite Fitch cutting the\ndebt outlook. Purbaya noted that the debt-to-GDP ratio remains within\nsafe bounds.<\/p>\n
Moreover, growth in 2025, at 5.11%, was among the highest in the G20.\n\u201cPerhaps because it is still a new administration and the Finance\nMinister is new as well, so perhaps the sanctions are that the Finance\nMinister cannot count,\u201d Purbaya joked in his office on Friday, 6 March\n2026.<\/p>\n
The state treasurer said the government will use all growth engines\nto ensure the economy runs, so the doubts of rating agencies regarding\ndebt can be dispelled. Purbaya also said he would travel abroad in April\nto explain Indonesia\u2019s fiscal policy, noting that April is the scheduled\ntime for meetings of the International Monetary Fund (IMF) and the World\nBank in Washington, D.C., United States.<\/p>\n
The former Chair of the Deposit Insurance Corporation\u2019s Board of\nCommissioners says he has no plans to travel abroad before Indonesia\u2019s\neconomy grows 6 percent. Yet given the current situation, he said the\ngovernment needs to outline its fiscal policy. \u201cSo in April I will go\noverseas to ensure that our Finance Minister understands what is being\ndone,\u201d Purbaya remarked.<\/p>\n
Editor\u2019s Pick: Stock Prospects for Issuers Dragged by Moody\u2019s\nRating<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/fitchs-debt-outlook-downgrade-becomes-a-serious-signal-1772997382", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }