Video: Investors Monitor 3% State Budget Deficit Risk, Its Impact on Indonesia's Market

Jakarta, CNBC Indonesia - Indonesia’s economy and financial markets are currently facing several negative sentiments due to assessments from several global rating agencies. Following MSCI’s suspension of the rebalancing of Indonesia’s stock index, Fitch Ratings has downgraded Indonesia’s debt outlook to negative. In response to these assessments from global rating agencies, Ciptadana Asset Management Director Herdianto Budiarto stated that this does not need to be overly concerning, as improvements can address the issue if implemented. The government’s role is needed to tackle the assessment of Indonesia’s debt prospects, one of which relates to concerns over the state budget deficit that is feared to exceed 3%. If state revenues cannot increase due to global conditions, then state expenditure reallocation and savings are necessary to prevent the deficit from widening further. For market players, Herdianto Budiarto noted that the deterioration in Indonesia’s debt prospects will impact investment interest in Indonesia’s financial markets; when the rating falls, investors demand higher returns. Therefore, the government must pay serious attention. What is the impact of this market sentiment on the prospects of Indonesia’s financial markets? How does it affect investment strategies in Indonesia’s financial markets? For more details, watch the dialogue between Andi Shalini and Ciptadana Asset Management Director Herdianto Budiarto on Power Lunch, CNBC Indonesia (Monday, 09/03/2026).