Indonesia's Investment Rating Downgraded, Capital Markets Face Increasing Pressure from Global Sentiment - INAnews

Pressure on Indonesia’s capital markets is intensifying as the investment outlook is downgraded by rating agencies Moody’s and Fitch Ratings. MACFIN INDEF researcher Riza Annisa Pujarama warns that if the issues concerning the rating agencies are not promptly addressed, capital outflows could shake the national economy.

“This rating will affect market sentiment. And the capital market is highly influenced by issues such as crude oil prices, fiscal risks, and a deficit reaching 2.92 percent in 2025; everything relates to investor confidence,” Riza stated during the National Public Discussion “Stability of Indonesia’s Capital Markets, Global Dynamics, and Investment Influencers” in Jakarta on Wednesday (1/4/2026).

She also highlighted the global oil price surpassing $100 per barrel, while Indonesia’s state budget assumes only $70. This condition worsens fiscal risks, especially since Indonesia remains a net importer of fuel.

Riza emphasised that retail investors need to understand macroeconomic factors, GDP growth, interest rates, inflation, and commodity prices as integral parts of investment analysis. Following influencer recommendations without understanding the macroeconomic context, she said, is the biggest vulnerability for the current Generation Z investors.