Video: Preferred Sectors for Asset Managers as Fitch Downgrades Indonesia's Debt Outlook

Jakarta, CNBC Indonesia - Indonesia’s economy and financial markets are currently facing several negative sentiments due to assessments from global rating agencies. Following MSCI’s suspension of the Indonesian stock index rebalancing, Fitch Ratings has downgraded Indonesia’s debt outlook to negative.

In response to this assessment from the global rating agency, Director of Ciptadana Asset Management, Herdianto Budiarto, stated that this should not be a cause for excessive concern because if improvements are made, the issue can be addressed.

The government’s role is needed in tackling Indonesia’s debt outlook assessment, 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 reallocation of state expenditures and savings are necessary to prevent the deficit from widening further.

For market participants, Herdianto Budiarto noted that the deterioration in Indonesia’s debt outlook 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 Director of Ciptadana Asset Management, Herdianto Budiarto, in Power Lunch, CNBC Indonesia (Monday, 09/03/2026).