Indonesia’s Finance Minister Purbaya Yudhi Sadewa responded to a recent outlook downgrade from Fitch Ratings, which revised the country’s debt rating outlook from stable to negative on March 4, 2026.
Minister Sadewa suggested the change in outlook may be linked to the recent transition to a new government and his own appointment as Finance Minister. He also noted that he has not yet traveled abroad since assuming the role.
“They might have thought, perhaps the Finance Minister can’t even do the calculations. That’s also my fault, since I haven’t traveled abroad yet,” Sadewa said during a press conference in Jakarta on Friday, March 6, 2026.
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“I initially thought I wouldn’t travel abroad until Indonesia’s growth exceeded 6%. But now I have to change that, because I also need to market our situation,” he added.
Sadewa indicated he plans to begin international travel in April 2026, starting with the IMF-World Bank meetings in Washington D.C., to demonstrate his understanding of the country’s financial position. The move comes as Indonesia seeks to reassure international markets following the Fitch outlook revision.
“So, in April, I will travel abroad to ensure that our Finance Minister understands what is being done,” Sadewa stated.
The Minister speculated that Fitch may be concerned about structural weaknesses within Indonesia’s state budget (APBN), though he expressed confusion as to the basis for this assessment.
“Because if we glance at the debt-to-GDP ratio, we are safe. If we look at the deficit-to-GDP ratio, we are safe. Our economic growth is even the highest in the G20. Countries around us, like Thailand, have lower growth and deficits above 4%. Vietnam is also above 4%, but why is Indonesia being targeted?” Sadewa questioned.
Fitch Ratings previously lowered Indonesia’s outlook to negative while maintaining the long-term foreign currency issuer default rating at BBB.
The revision reflects increased policy uncertainty and concerns regarding the consistency and credibility of Indonesia’s economic policies amid a growing centralization of decision-making, potentially impacting medium-term fiscal prospects, investor sentiment and external resilience. The move underscores the importance of fiscal policy in maintaining investor confidence.
Despite the outlook revision, Fitch affirmed the BBB rating, citing Indonesia’s track record of maintaining macroeconomic stability, supported by solid medium-term growth prospects, a moderate government debt-to-GDP ratio, and adequate external reserves.
“The rating strengths are constrained by weak revenue performance, high debt servicing costs, and structural features that lag behind other ‘BBB’ rated countries, such as governance indicators,” the Fitch report stated.
(aid/hns)
