JAKARTA (Feb 6): Indonesian stocks and currency traded weaker in early trade on Friday after Moody's lowered the country's credit rating outlook, the latest jolt in a turbulent start to the year for Southeast Asia's largest economy. Moody's said on Thursday it had cut Indonesia's credit rating outlook to negative from stable, citing reduced predictability in policymaking days after MSCI flagged transparency issues that triggered a market rout of more than US$80 billion (RM316.36 billion). Indonesia's chief economic minister Airlangga Hartarto late Thursday downplayed the step, saying ratings agencies and global financial markets were "yet to understand" the country's new growth strategy. On Friday, Indonesia's financial regulator said it believed Moody's affirmation of its Baa2 rating shows the country's economic fundamentals remain solid and supported by its financial sector resilience and strong economic growth. "The Moody's outlook downgrade is a warning shot, which could trigger other ratings agencies to follow suit, particularly if the nature of policymaking remains subject to a heightened degree of uncertainty," said economists at OCBC in a note.

Source: The Edge Markets February 06, 2026 02:25 UTC