Fitch cuts Indonesia credit rating outlook to negative
A drone view shows traffic during evening rush hours in Jakarta, Indonesia, February 3, 2026. REUTERS/Willy Kurniawan
JAKARTA, March 4 : Fitch Ratings on Wednesday cut Indonesia's credit rating outlook to negative from stable, citing increasing uncertainty and reduced credibility in policymaking, in a move that will add to investor concerns about Southeast Asia's largest economy.
Fitch became the second rating agency to revise down Indonesia's sovereign rating outlook this year, after Moody's last month cut its outlook due to reduced predictability in policymaking.
Both agencies have maintained Indonesia at the second-to-lowest investment grade rating, and a negative outlook means the agency's next rating action could be a downgrade.
The Moody's outlook cut rattled Indonesia's financial markets, and it came soon after index provider MSCI in January had flagged transparency issues in the stock market that triggered a $120 billion rout.
"The outlook revision reflects increasing policy uncertainty and erosion of Indonesia's policy mix consistency and credibility amid growing centralisation of policymaking authority," Fitch said in a statement.
"This could weaken the medium-term fiscal outlook, undermine investor sentiment, and put pressure on external buffers."
Fitch's decision was widely reported by local media ahead of the official announcement.
