Ministry of Finance commits to continuing fiscal discipline as Fitch revises Indonesia's debt outlook
Jakarta (ANTARA) - The Ministry of Finance has reiterated its commitment to continuing fiscal discipline in line with Fitch Ratings’ revision of Indonesia’s debt outlook from stable to negative.
“Indonesia’s government reiterates its commitment to maintaining macroeconomic stability and continuing fiscal discipline as mandated by law,” said Deni Surjantoro, Head of the Bureau of Communications and Public Information Services at the Ministry of Finance, in a written statement from Jakarta on Wednesday.
Fitch revised its projection of Indonesia’s debt rating due to rising concerns about government policy uncertainty.
One of the highlights is pressure on expenditure and revenue. However, Deni stated that Indonesia’s fiscal position has shown improvement.
State revenue grew 9.5 percent year-on-year in January and 12.8 percent year-on-year in February 2026.
The increase was supported by tax receipts which grew 30.7 percent year-on-year in January and 30.4 percent in February 2026.
Parallely, state expenditure grew significantly, by 25.7 percent year-on-year in January and 41.9 percent year-on-year in February 2026.
The Ministry of Finance ensures that expenditure acceleration and economic stimulus are carried out in a measured manner to maintain the momentum of growth that is continuing to rise while ensuring the State Budget (APBN) and fiscal discipline are kept intact.
On the other hand, Fitch also notes the investment risks outside the APBN, particularly related to Danantara.
Deni explained that strengthening collaboration with Danantara as a new growth engine aims to mobilise the economy through strategic investments outside the APBN while still focusing on sustainable profits, including continuing to mobilise high value-added private investment.
He said the governance and operations of Danantara are kept credible with measured risk, so that Danantara becomes a credible strategic investment instrument, well managed, and aligned with long-term macrofiscal stability.
Although Fitch revised the projection of Indonesia’s debt rating, the rating agency still maintains Indonesia’s debt rating at BBB or investment grade.
This assertion is supported by Indonesia’s track record in maintaining macroeconomic stability, reasonably good medium-term growth prospects, a relatively moderate government debt-to-GDP ratio, and adequate foreign exchange reserves (cadev).
Deni said the government continues to improve the business climate through debottlenecking and deregulation to boost investment.
All these measures are designed to accelerate economic growth and reinforce structural reforms to enhance economic resilience.
The government also continues to strengthen cross-sector coordination so that the momentum of economic growth can be maintained in the medium term while maintaining stability.
Coordination of fiscal-monetary policy remains a priority to maintain market confidence and ensure that priority programmes run effectively and accountably.
Fitch projects that Indonesia’s economic growth will remain around 5 percent in 2026-2027, higher than the BBB country median.
“With a solid economic foundation, maintained fiscal discipline, and ongoing structural reforms, Indonesia remains on a positive path to strengthen growth and medium-term economic resilience,” said Deni.