Moody's maintained its Baa2 rating but said the shift to a negative outlook from stable reflected risks to policy effectiveness and signs of weakening governance. Indonesia's central bank governor Perry Warjiyo said the ratings outlook cut did not mean the country's economic fundamentals were weakening, adding its economic growth remains solid. Indonesia's Finance Ministry said it "appreciates" Moody's sustained rating, and that the government was undertaking "economic transformation" to revitalise growth. "The government continues to ensure that all potential risks are properly managed," the ministry said in a statement after the Moody's outlook change. A negative outlook means Moody's next move could potentially be a downgrade in ratings.

Source: The Edge Markets February 05, 2026 12:43 UTC