Purbaya: Do Not Fear Fitch's Negative Outlook; Indonesia's Economic Foundations Remain Strong

Jakarta — Finance Minister Purbaya Yudhi Sadewa addressed the decision by international rating agencies to revise Indonesia’s credit rating outlook to negative, saying the assessment does not fully reflect the domestic economic fundamentals which he considers still solid.

He noted that, in terms of debt-to-GDP, the deficit-to-GDP, and growth, Indonesia is in a relatively safe position. In 2025, the Indonesian economy grew by 5.11 percent, one of the highest among G20 members.

‘If we look at the debt-to-GDP ratio, we are safe. We look at the deficit-to-GDP, we are safe. Growth is also safe. In fact, we were the top among the G20, growing 5.11 percent last year,’ Purbaya said during an iftar gathering at the Finance Ministry’s office in Jakarta on Friday (6 March 2026).

He compared Indonesia with some regional countries. Thailand, Malaysia, and Vietnam reportedly have higher fiscal deficits than Indonesia.

‘Countries around us, such as Thailand, are growing slower than us, with deficits above 4 percent. Malaysia is also above 4 percent, if I’m not mistaken. Vietnam above 4 percent,’ he said.

Fitch Ratings had previously revised Indonesia’s debt outlook to negative from stable, although it kept the credit rating at BBB, still within investment-grade.

The outlook change was driven by increased policy uncertainty, including concerns about fiscal policy consistency and potential medium-term pressures on state revenue.

Nevertheless, the agency still regards Indonesia as possessing strengths, such as macroeconomic stability, relatively low government debt compared with peers with similar ratings, and solid growth prospects.

In response, Purbaya questioned why Indonesia had become a focus of rating agencies. He suggested that such doubts could be influenced by other factors, including a transition in government and changes in senior economic officials.

‘But why is Indonesia the target? Perhaps because the new administration and the new Finance Minister are in place, so they are wary that the Finance Minister may be unable to manage the budget,’ he added.