Fitch Ratings Downgrades Indonesia's Credit Outlook

On Wednesday, multiple Indonesian local media outlets reported that Fitch Ratings has downgraded Indonesia's sovereign credit rating outlook from stable to negative. The credit rating firm made this decision due to increased policy uncertainty and concerns over the consistency of the policy mix amid centralized policymaking.

Detik.com and KataData reported the downgrade citing a draft statement by Fitch, while the investigative news outlet Tempo published a report based on an official statement from Fitch. However, Reuters could not immediately obtain confirmation, as their calls and emails to Fitch went unanswered.

Detik.com highlighted that Fitch kept Indonesia's rating at BBB but revised the outlook. This move follows Moody's, which last month also cut Indonesia's outlook to negative, pointing to reduced predictability in policymaking. The Indonesian finance ministry did not immediately respond to requests for comment.