JAKARTA - International rating agency Fitch Ratings assessed Perry Warjiyo's resignation from the position of Governor of the Bank Indonesia (BI) as having the potential to increase uncertainty regarding the direction of Indonesia's monetary policy.
This condition is considered to affect investor sentiment as well as raise concerns about the independence of the central bank and the burden of state budget financing.
Fitch Ratings' Director of Asia-Pacific Sovereign Ratings, George Xu, said the uncertainty risked increasing external pressure amid still fragile market confidence.
"We see the risk of further external pressures coming from fragile investor sentiment amid uncertainty about the direction of monetary policy in the future and perceptions of central bank independence, especially given the increasingly complex Bank Indonesia policy mandate," he said in a statement, quoted, Wednesday, July 29, 2026.
According to George, this situation has the potential to suppress the rupiah exchange rate, increase government funding costs, and reduce Indonesia's foreign exchange reserves if it is not anticipated well.
"This can continue to burden the stability of the rupiah, increase government borrowing costs, and erode external reserves," he said.
However, Fitch stated that it would continue to monitor the development and its implications for economic stability and national policies.
George also reminded that in the previous ranking results, Fitch had highlighted the increasing policy uncertainty as well as the reduced consistency and credibility of Indonesia's policy mix amid the increasingly centralized decision-making process.
According to Fitch, these factors are one of the considerations that prompted the change in the outlook (outlook) of Indonesia's sovereign debt rating from stable to negative.
Nevertheless, Fitch has maintained Indonesia's debt rating at the BBB level, which is still in the investment grade category.
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