Purbaya Responds to Fitch Ratings’ Cut to Indonesia’s Debt Outlook
Finance Minister Purbaya Yudhi Sadewa responded to Fitch Ratings’ decision to cut Indonesia’s debt outlook from stable to negative, arguing that Indonesia’s macroeconomic indicators still show an intact condition.
Purbaya noted that the debt-to-GDP ratio remains within safe bounds. He also said that economic growth in 2025, at 5.11 percent, is among the highest in the G20. “Perhaps because there is still a new administration and a new Finance Minister, so perhaps their sanctions are because the Finance Minister can’t count,” Purbaya said in his office on Friday, 6 March 2026.
One of the concerns Fitch raised in its assessment was about government revenue. Purbaya, however, said tax receipts through February 2026 had reached Rp 245.1 trillion, up 30.4 percent year-on-year.
The nation’s treasurer said the government would unleash all growth engines to ensure the economy keeps moving, so as to dispel doubts from the rating agencies. “So there is no need to fear Fitch issuing a negative outlook. Our foundations remain strong,” he added.
Purbaya also said he would travel abroad in April to explain Indonesia’s fiscal policy. Note that April is the schedule for meetings of the International Monetary Fund (IMF) and World Bank in Washington, D.C., United States.
The former Chair of the Board of Commissioners of the Indonesia Deposit Insurance Corporation said he did not plan to travel abroad before Indonesia’s economy grew 6 percent. However, given the current situation, he said, the government needs to outline Indonesia’s fiscal policy. “So in April I will go abroad to ensure that our Finance Minister understands what is being done,” Purbaya said.
Fitch Ratings did cut the outlook or the debt rating outlook for Indonesia from stable to negative on Wednesday, 4 March 2026. Nevertheless Fitch kept Indonesia’s rating at BBB or investment grade. Fitch has become the second agency to lower Indonesia’s outlook after Moody’s.
“The revision of the outlook reflects rising policy uncertainty and concerns about the erosion of the consistency and credibility of Indonesia’s policy mix amid increasing centralisation of policy-making authority,” Fitch said in a press release on Wednesday, 4 March 2026. According to Fitch, this could weaken the medium-term fiscal prospects, dampen investor sentiment, and put pressure on external reserves.