Fitch in focus, Purbaya to present Indonesia's fiscal policy overseas

Jakarta — Finance Minister Purbaya Yudhi Sadewa plans to depart for overseas to present Indonesia’s fiscal policy as a basis for assessment by global rating agencies, including Fitch Ratings. In a media briefing at the Ministry of Finance, Jakarta, on Friday, Purbaya admitted that he has so far focused more on boosting domestic economic growth. However, given that two global rating agencies have revised the outlook on Indonesia’s debt, Fitch and Moody’s Investors Service (Moody’s), Purbaya will participate in fiscal events abroad. It should be noted that in April 2026, the IMF and World Bank will hold meetings in Washington, DC. Regarding Fitch’s criticisms, Purbaya stated that Indonesia’s fiscal position is relatively safe, including the debt-to-GDP ratio and the deficit-to-GDP ratio. As of 31 December 2025, total government debt was Rp9,637.90 trillion or 40.46% of GDP. The deficit as of 28 February 2026 stood at Rp135.7 trillion or 0.53% of GDP, still within the APBN target of Rp689.1 trillion or 2.68% of GDP. Fitch projects the fiscal deficit for 2026 at around 2.9% of GDP, slightly above the government’s APBN 2026 target and the same as the 2025 projection. ‘One of their concerns is revenue from taxes, customs, and other sources that are at risk. We will ensure this improves,’ Purbaya said. Tax receipts at the end of February 2026 were Rp245.1 trillion, up 30.4%, while customs and excise were Rp44.9 trillion, down 14.7%. On the other hand, Indonesia’s economy also posted a positive record. In 2025, Indonesia’s national economy grew by 5.11%. The minister estimates growth in Q1 2026 to be more accelerative, targeting 5.5–6%. To pursue this target, Purbaya will accelerate government spending while maintaining liquidity in the financial sector. The special mission vehicle (SMV) under the Ministry of Finance will also be optimised to spur growth. ‘So, we will use all engines of growth and ensure everything runs, so doubts about the rating agencies can be dispelled,’ he said.