Fitch Negative Outlook, Airlangga Urges Strengthening of the Tax-to-GDP Ratio

Jakarta — Coordinating Economic Affairs Minister Airlangga Hartarto said the government is continuing to push the strengthening of the tax system through the implementation of coretax to improve the national tax ratio. This effort is seen as aligned with Fitch Ratings’ note that downgraded Indonesia’s debt outlook to negative.

Airlangga said the rating agency’s note would serve as input for the government, particularly regarding efforts to bolster state revenue.

‘We will continue to monitor coretax so that our tax ratio can be increased,’ Airlangga said in Jakarta on Thursday, 5 March 2026.

He said the government understands the need to strengthen state revenue amidst various global economic pressures. Therefore, tax system reform is being advanced through the implementation of coretax at the Ministry of Finance.

Although the outlook was downgraded, Fitch still maintains Indonesia’s debt rating at BBB or still within the investment-grade category. Airlangga regarded this as indicating Indonesia’s economic fundamentals remain fairly strong.

‘What matters is that Indonesia remains investment grade. Going forward, of course, what Fitch’s warning means we will study,’ he said.