Minister Purbaya Responds to Fitch's Downgrade of Indonesia's Debt Outlook

TEMPO.CO, Jakarta - Finance Minister Purbaya Yudhi Sadewa responded to Fitch Ratings' downgrade of Indonesia's debt outlook from stable to negative. He claimed that Indonesia's macroeconomic indicators still show a safe condition.

Purbaya mentioned that the debt-to-Gross Domestic Product (GDP) ratio remains within safe limits. In addition, Purbaya said that Indonesia is one of the highest in the G20 countries with an expected economic growth of 5.11 percent in 2025. "Maybe because it's still a new government and a new Finance Minister, so they sanctioned fearing that the Finance Minister might not be able to calculate," said Purbaya in his office on Friday, March 6, 2026.

Purbaya stated that tax revenue had reached Rp 245.1 trillion by February 2026, marking a 30.4 percent year-on-year increase.

The state treasurer stated that the government will use all growth engines to ensure the economy runs, so doubts from credit rating agencies can be refuted. "So there is no need to fear Fitch issuing a negative outlook. Our foundation is still strong," said Purbaya.

Purbaya also said that he will travel abroad next April to explain Indonesia's fiscal policies. Note that April is the schedule for the International Monetary Fund (IMF) and World Bank meetings in Washington, D.C., United States.

The former Chair of the Board of Commissioners of the Deposit Insurance Corporation said he has no plans to go abroad before Indonesia's economy grows by 6 percent. However, considering the current situation, he said the government needs to explain Indonesia's fiscal policy. "So in April, I will go abroad to make sure that our Minister of Finance understands what is being worked on," said Purbaya.

Fitch Ratings downgraded Indonesia's debt outlook from stable to negative on Wednesday, March 4, 2026. However, Fitch maintained Indonesia's rating at BBB or investment grade. Fitch became the second agency to downgrade Indonesia's outlook after Moody's.

"The Outlook revision reflects increasing policy uncertainty and erosion of Indonesia's policy mix consistency and credibility amid growing centralisation of policymaking authority," wrote Fitch in an official statement on Wednesday, March 4, 2026. According to Fitch, this could weaken the medium-term fiscal prospects, undermine investor sentiment, and put pressure on external reserves.

Read: Fitch Cuts Indonesia's Debt Outlook, Minister: Danantara Is a New Agency

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