TEMPO.CO, Jakarta - The Indonesian Industrial Estates Association (HKI) views Fitch Ratings' decision to downgrade Indonesia's debt outlook from stable to negative as a serious signal that the government must not ignore. HKI General Chairperson Ahmad Ma'ruf Maulana stated that the negative outlook is not merely a technical assessment by the rating agency.
According to Ahmad, the outlook downgrade serves as a warning to the government that the global market is beginning to perceive increased policy uncertainty. He stressed, "If not promptly addressed with clear corrective measures, the impact could directly affect industrial investment, project financing costs, and investor confidence," as quoted in an official statement received on Sunday, March 8, 2026.
HKI stated that Indonesia's industrialization is currently at a crucial phase. Strategic manufacturing sectors such as electronics, renewable energy, batteries, and downstream industries require significant long-term investment. In such a scenario, fiscal policy stability, regulatory consistency, and economic governance credibility are crucial factors in attracting and retaining capital.
According to HKI, a change in the country's risk perception can directly impact the cost of capital for industrial projects. Ahmad stated, "Global investors tend to postpone or review expansion plans when they observe macroeconomic policy uncertainties."
HKI also urged the government to take concrete steps to strengthen national economic policy credibility. Ahmad emphasized that investors need certainty that Indonesia's economic policies are stable and predictable. If this negative signal is not promptly addressed, Indonesia risks losing the momentum of its ongoing industrialization.
Finance Minister Purbaya Yudhi Sadewa previously mentioned that Indonesia's macroeconomic indicators still reflect a safe condition despite the Fitch downgrade. Purbaya noted that the debt-to-Gross Domestic Product (GDP) ratio remains within safe limits.
Furthermore, with 2025 economic growth reaching 5.11%, Indonesia maintains one of the highest growth rates among G20 countries. "Maybe because it's still a new government and the Finance Minister is also new, they think perhaps the Finance Minister can't do the math," Purbaya stated at his office on Friday, March 6, 2026.
The state treasurer stated that the government will utilize all growth engines to ensure the economy runs, thus dispelling doubts from credit rating agencies. Purbaya also mentioned his upcoming trip abroad in April to explain Indonesia's fiscal policy. Notably, April is the scheduled window for the International Monetary Fund (IMF) and World Bank meetings in Washington, D.C.
The former Chairperson of the Board of Commissioners of the Deposit Insurance Corporation expressed that he originally had no plans to go abroad before Indonesia's economy grew by 6%, but considering the current situation, he stated that the government needs to elucidate Indonesia's fiscal policy. "So in April, I will go abroad to ensure that our Finance Minister understands the work being done," Purbaya stated.
Read: Minister Purbaya Responds to Fitch's Downgrade of Indonesia's Debt Outlook
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