US EditionIndonesia Media Report Fitch Cuts Country's Rating Outlook to Negative
Fitch cited risks from policy centralization, possible loosening of fiscal rules, and costly spending plans amid concerns over Indonesia's fiscal credibility and economic growth targets.
- Fitch Ratings revised Indonesia's credit outlook to negative on Wednesday, citing increasing uncertainty and reduced credibility in policymaking amid greater centralisation.
- Aiming to lift growth to 8%, the government’s policy push and Parliament of Indonesia’s state finance law review this year raised concerns over loosening the 3% annual fiscal deficit ceiling and public debt limit at 60% of GDP.
- Some local media reported the decision ahead of the formal note, with Finance Minister Purbaya Yudhi Sadewa saying the government will adjust spending to keep the deficit legal.
- The negative outlook raises the risk of a downgrade as Fitch warned it could weaken the medium-term fiscal outlook, undermine investor sentiment, and pressure external reserve buffers amid market strain.
- Following Moody's move last month, Fitch's revision makes it the second agency to downgrade Indonesia's outlook this year after MSCI's January warning triggered a $120 billion rout, while S&P remains the only major agency yet to review.
11 Articles
11 Articles
Indonesia’s Rating Outlook Takes Further Blow as Fitch Cuts View
Fitch Ratings Inc. lowered its outlook on Indonesia’s credit rating to negative due to increasing policy uncertainty in the Southeast Asian nation, joining a growing group of firms warning of risks to the nation’s assets.
Fitch Ratings lowered Indonesia's debt outlook from stable to negative, although its BBB rating remains intact.
Fitch Ratings Lowers Indonesia's Credit Rating Outlook Amid Policy Concerns
Fitch Ratings Lowers Indonesia's Credit Rating Outlook Amid Policy Concerns Fitch Ratings has downgraded the sovereign credit rating outlook for Indonesia from stable to negative, multiple local media outlets reported Wednesday. Both Detik.com and Kompas cited statements by Fitch, though the ratings agency declined to comment officially.Indonesia is grappling with increased policy uncertainty. Concerns about the consistency and credibility of it…
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