Juda Agung Assures Fitch Ratings on Indonesia's Fiscal Policy

Deputy Finance Minister Juda Agung has assured Fitch Ratings that the government is committed to ensuring Indonesia’s fiscal policy remains strong and adaptable to changing economic conditions. This statement was delivered at the Fitch on Indonesia event in Jakarta.

In March, the debt rating agency Fitch Ratings downgraded Indonesia’s outlook from stable to negative. “Fitch Ratings recently expressed legitimate concerns. I assure you that we are addressing those concerns,” Juda said in his speech at the St. Regis in Jakarta on Thursday, 23 April 2026.

Juda highlighted the current geopolitical situation as a challenge because it has caused spikes in oil prices and global inflation. According to him, this condition puts pressure on Indonesia’s fiscal space.

However, the former Deputy Governor of Bank Indonesia stated that the government has undertaken a series of efforts to keep the fiscal deficit below 3 percent of Gross Domestic Product. First, the government is increasing the efficiency of financing and the quality of implementing priority programmes. At the same time, the government is striving to maintain purchasing power by not raising subsidised fuel prices.

Second, the government is working to ensure this year’s revenue targets are met. These efforts include implementing Coretax, optimising windfall profits from natural resources, and better management of tax refunds. The third effort is to increase productivity and encourage investment. Juda said the government is prioritising social welfare programmes as long-term investments.

Juda stated that Indonesia is fully committed to policy clarity and consistency. “And we have enhanced our fiscal instruments to incorporate synergies with our new strategic partner, Danantara, to support investment and development programmes,” he said.