February 13, 2026 | 02:10 pm
TEMPO.CO, Jakarta - University of Paramadina economist Wijayanto Samirin believes the government needs to listen to domestic economic analysts' criticisms. This is especially true after Moody's downgraded Indonesia's debt rating outlook from stable to negative.
According to Wijayanto, the concerns raised by Moody's have long been articulated by domestic economists. "Unfortunately, they have not been adequately addressed by the government. For example, Moody's notes are very similar to the content of the 7 demands put forward by the Indonesian Economic Alliance," he told Tempo on Friday, February 13, 2026.
The downgrade of Indonesia's outlook by Moody's came after Morgan Stanley Capital International (MSCI) warned Indonesia of the suspension of stock rebalancing. Wijayanto stated that assessments by global rating agencies are crucial as they serve as a reference for investors.
He hopes the government will listen to the criticisms of domestic economists. "In essence, moving forward, the government needs to listen more to feedback from our observers or economists. Constructive criticism is the vitamin that keeps our economy healthy," he said.
Moody's conveyed the correction to Indonesia's rating outlook through an official release on February 5, 2026. This prospect has degraded due to uncertainty in policymaking and fiscal pressure resulting from the expansion of programs such as the free nutritious meal (MBG) program.
The Indonesian Economic Alliance also expressed similar concerns through the 7 Urgent Demands presented during their meeting with Coordinating Minister for the Economy Airlangga Hartarto in September 2025. They reiterated their demands on January 20, 2026.
One of their points is urging the government to comprehensively address budget misallocation and place the budget on policies and programs in a reasonable and proportional manner. They also highlighted populist programs such as MBG and the presence of Danantara.
Here is the content of the Seven Urgent Economic Demands by the Indonesian Economic Alliance:
1. Comprehensively address budget misallocation and place the budget on policies and programs in a reasonable and proportional manner.
2. Restore the independence, transparency, and ensure there is no intervention based on the interests of certain parties in various state institutions (Bank Indonesia, Statistics Indonesia, House of Representatives, Supreme Court, Constitutional Court, Corruption Eradication Commission, Audit Board, Prosecutor's Office), and restore state institutions to their dignity and function as they should be.
3. Stop the dominance of the state that risks weakening local economic activities, including the involvement of Danantara, state-owned enterprises, the TNI, and the National Police as dominant organizers, thus making the market uncompetitive and capable of displacing local employment, the MSME ecosystem, the private sector, and the social capital of the community.
4. Deregulate policies, permits, licenses, and simplify bureaucracy that impedes the creation of a conducive business and investment environment.
5. Prioritize policies that address inequality in various dimensions.
6. Return to evidence-based policy and technocratic processes in policy making and eradicate populist programs that disrupt fiscal stability and prudence (such as Free Nutritious Meals, Red and White Village Cooperatives, People's Schools, downstreaming, energy subsidies and compensations, and Danantara).
7. Improve the quality of institutions, build public trust, and improve governance, state organizers, and democracy, including eradicating conflicts of interest and rent-seeking.
Read: Indonesia's IHSG Closes Lower at 8,265 on Wednesday
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