February 6, 2026 | 06:47 am
TEMPO.CO, Jakarta - Moody's on Thursday maintained Indonesia's credit ratings at Baa2, its second-lowest investment grade, with outlook downgraded to negative from stable.
In its report, Moody's estimates Indonesia's economic growth to remain stable at 5% over the near to medium term, backed by "natural resources endowments and favorable demographics."
The government's debt burden is considered to remain under control, attributed to prudent fiscal and monetary policies with inflation kept within target.
Deni Surjantoro, the head of the Ministry of Finance's Communication and Information Services Bureau, said in a written statement on Thursday that the rating is part of the final assessment and discussion process between relevant ministries and state agencies. These include the Coordinating Ministry for Economic Affairs, the Ministry of Finance, Bank Indonesia, BP BUMN, the Financial Services Authority (OJK), Danantara Indonesia, and the Ministry of Investment and Downstream Industry/BKPM.
According to Deni, Moody's acknowledged that Indonesia currently works to accelerate higher economic growth, supported by the presence of Danantara.
State Budget (APBN) serves as a catalyst in creating a healthy ecosystem through social programs such as the Free Nutritious Meals (MBG) program, People's Schools, and the housing program.
But Moody's underscored the importance of maintaining predictability in policy-making, public communication, and policy cohesion and coordination amid ongoing changes in policy and fiscal governance.
Moody's also noted that Indonesia's weaker revenue base limits the government's ability to support higher growth through fiscal spending.
Meanwhile, Deni said the Indonesian government is striving to manage all potential risks to achieve higher growth. These measures include debottlenecking and synergizing with Bank Indonesia to maintain price stability, exchange rates, and financial markets.
The government remains optimistic about achieving higher economic growth and people's welfare, with signs of economic improvement already visible. In the fourth quarter of 2025, Indonesia's economic growth reached 5.39%, exceeding market expectations.
“The government is optimistic that economic growth will continue to improve with a commitment to better fiscal management, supported by increased household consumption and increased investment in various sectors as indicators of stronger investor confidence in Indonesia,” said Deni.
Read: Indonesia Records 5.11% Economic Growth in 2025, Falls Short of Govt Target
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