Fitch Flags Danantara in Indonesia's Outlook; Airlangga: Must Build a Track Record

Jakarta – Fitch Ratings has highlighted the existence of the sovereign wealth fund Danantara in its latest report, which lowered Indonesia’s debt rating outlook to negative. Nevertheless, Coordinating Minister for Economic Affairs Airlangga Hartarto said it was natural for the investment body to draw market attention given its relatively new status. ‘Danantara is a new sovereign wealth fund organisation; of course, not everyone knows it yet,’ Airlangga said in Jakarta on Thursday, 5 March 2026. He said the fund needs time to build a track record in order to increase confidence among investors and international market participants. Therefore, the attention arising from the rating agency should be a key consideration for Danantara’s management going forward. Airlangga added that the process of introducing and strengthening Danantara’s credibility would be the responsibility of the fund’s management. Earlier, the international rating agency Fitch Ratings revised Indonesia’s credit outlook to negative from stable. However, Fitch kept the BBB rating for the Long-Term Foreign-Currency Issuer Default Rating (IDR). The change in outlook reflects heightened policy uncertainty and concerns about the consistency of Indonesia’s economic policy framework. State revenue was also pressured by weaker tax receipts in 2025, the partial reversal of VAT increases, and the transfer of dividends from state-owned enterprises to the new sovereign wealth fund, Danantara. Fitch regards Danantara as playing an important role in promoting investments in downstream sectors of minerals, energy, food and agriculture. The fund targets investments of around US$26 billion, or about 1.7 percent of GDP, this year.