Fitch Downgrades Indonesia's Credit Outlook to Negative, What Will It Mean for the Economy?

REPUBLIKA.CO.ID, JAKARTA — The global credit rating agency Fitch Ratings has lowered the outlook on Indonesia’s credit rating from stable to negative. However, Fitch still assigns a credit rating at BBB level.

The Ministry of Finance (Kemenkeu) interprets Fitch Ratings’ decision to keep Indonesia’s credit rating at BBB as a sign of international rating agencies’ confidence in the foundations of the national economy. Head of the Bureau of Communications and Information Services of the Ministry of Finance, Deni Surjantoro, said the assessment shows that Indonesia’s macroeconomic stability is still regarded as strong by the global market.

‘Fitch maintains Indonesia’s credit rating at BBB. This demonstrates confidence in Indonesia’s economic foundations, which are solid, stable, and with a solid medium-term outlook,’ Deni said in a written statement on Wednesday (4 March 2026).

Fitch assesses that Indonesia has a strong track record in maintaining macroeconomic stability, inflation that is relatively contained, and a government debt structure that remains moderate compared to countries with similar ratings.

However, the rating agency adjusted the outlook from stable to negative. According to Fitch, the outlook could return to stable if policy consistency and fiscal discipline remain maintained.

The government reiterates its commitment to continuing to maintain economic stability and to sustain fiscal discipline in accordance with statutory provisions. In addition, the government also continues to improve the business environment through deregulation and efforts to reduce various investment barriers.

Several economic indicators in early 2026 are also said to show improvement, ranging from rising consumer confidence indices, industrial activity, electricity consumption in the business and industrial sectors, to vehicle sales. The government hopes that this momentum can keep economic growth stable in the coming years.