JAKARTA - The Ministry of Finance (Kemenkeu) responded to Moody's Ratings decision to downgrade Indonesia's credit rating outlook from stable to negative.
The Head of the Communication and Information Services Bureau (KLI) of the Ministry of Finance, Deni Surjantoro, explained that Moody's had maintained Indonesia's credit rating at the Baa2 level, or one level above the investment grade limit.
The results of the affirmation are the final results of the Moody's assessment process after conducting a series of visits and evaluations in Jakarta on January 27-29, 2026.
In the assessment process, Moody's discussed with a number of ministries and agencies, including the Ministry of Finance, the Coordinating Ministry for Economic Affairs, Bank Indonesia (BI), BP BUMN, Financial Services Authority (OJK), Danantara, and the Ministry of Investment and Industrialization/BKPM.
The Ministry of Finance highlighted a number of key points from Moody's assessment, one of which is that Indonesia's economic resilience remains the main foundation of the country's credit profile and real gross domestic product (GDP) growth is expected to remain stable in the medium term, supported by natural resource wealth and a favorable demographic structure.
From a fiscal perspective, the government's debt burden is considered to remain under control thanks to careful fiscal and monetary policies, as well as inflation that is maintained within the target range, which also strengthens domestic economic stability.
Moody's also recognizes Indonesia's institutional capacity in managing external pressures, including maintaining exchange rate stability, as one of the main strengths of the national economy.
"Moody's understands that the Indonesian government is trying to accelerate higher economic growth. This is important as a prerequisite for becoming a developed country. Efforts to achieve high growth are now finding momentum and the government is focusing on fundamental changes in economic management," he explained through a press release, quoted Friday, February 6.
In the assessment, fiscal policy is seen as an important instrument for economic development and management to accelerate growth, and Danantara's presence is also considered to provide additional impetus as a new source of growth.
In the investment sector, the State Budget is said to have a strategic role as a catalyst in creating a healthy economic ecosystem.
In addition, the optimization of state finances is directed to improve the welfare of the community through spending that directly targets public needs, such as the Free Nutritious Meal (MBG) program, People's Schools, improving the quality of health services, food security, the People's Housing Program, and strengthening public services.
Moody's also emphasized the importance of maintaining consistency and predictability of policies, the quality of public communication, and coordination between ministries and agencies in the midst of ongoing policy and economic governance changes.
In addition, strengthening the state revenue base is considered crucial to support priority spending and support higher economic growth.
"The government appreciates Moody's assessment which maintains Indonesia's credit rating at Baa2, with an adjustment of outlook from stable to negative. The government continues to carry out economic transformation and revive all economic growth engines," he said.
The government also ensures that various potential risks can be managed well, including through debottlenecking efforts that have hampered business activities.
In terms of stability, the government together with Bank Indonesia continues to maintain price, exchange rate, and financial market stability.
The government stated that it was optimistic that it could accelerate economic growth while improving people's welfare.
The improvement in economic conditions is said to have begun to be seen since the second semester of 2025, reflected in a number of indicators that show a positive trend.
Data from the Central Statistics Agency (BPS) recorded economic growth in the fourth quarter of 2025 at 5.39 percent.
"The government is optimistic that economic growth will continue to improve with better economic management commitments, supported by increased household consumption, and increased investment in various sectors as an indicator of investor confidence in Indonesia," he said.
Until now, the downgrade of Indonesia's credit rating outlook has only been carried out by Moody's. Meanwhile, other rating agencies such as Fitch Ratings, S&P Global Ratings, Japan Credit Rating Agency, and Rating & Investment still maintain Indonesia's outlook at a stable level.
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