TEMPO.CO, Jakarta - Bank Indonesia (BI) Governor Perry Warjiyo responded to Fitch Ratings' decision to maintain Indonesia's debt rating at BBB and revise the debt outlook from stable to negative.
Perry stated that the affirmation of Indonesia's BBB rating reflects global confidence in Indonesia's strong economic fundamentals.
"The adjusted outlook is believed not to reflect the weakening of Indonesia's economic fundamentals," Perry said in an official statement on Wednesday, March 4, 2026. He claimed that Indonesia's economic prospects remain strong and resilient.
According to Perry, Indonesia's economic strengthening is reflected in the solid domestic economic growth amid increasing global uncertainty, controlled inflation, including low core inflation, and the continued strengthening of the rupiah exchange rate through exchange rate stabilization policies in the offshore NDF market as well as spot transactions and Domestic Non-Deliverable Forward (DNDF) in the domestic market.
Furthermore, Perry stated that financial system stability remains intact. This is supported by adequate liquidity, well-maintained banking capital at a high level, and low credit risk. "In addition, widespread payment system digitization, supported by stable infrastructure and a healthy industrial structure, also supports economic growth," he added.
Fitch Ratings revised Indonesia's debt outlook on Wednesday, March 4, 2026. Fitch said the revision reflects increased policy uncertainty and concerns about the erosion of the consistency and credibility of Indonesia's policy mix amid growing centralization of policy-making authority.
"This could weaken the medium-term fiscal prospects, dampen investor sentiment, and put pressure on external reserves," Fitch wrote in its official statement on Wednesday, March 4, 2026.
In its considerations, Fitch highlighted the 8 percent economic growth target, which could potentially lead to relaxation of the fiscal and monetary policy mix. Fitch itself predicts that the 2026 State Budget deficit will reach 2.9 percent of Gross Domestic Product.
Fitch also pointed out the government's social programs, such as the free nutritious meals (MBG), which incur high expenses. Fitch predicts that, in the absence of significant income mobilization measures, government revenue will only reach 13.3 percent of GDP in 2026 and 2027.
Read: Fitch Ratings Downgrades Indonesia's Debt Outlook to Negative
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