RRI.CO.ID, Jakarta – Indonesia’s credit outlook at Moody’s Investors Service is expected to improve as the country’s economic performance strengthens, the government said, emphasizing sustained growth and prudent fiscal management as key factors in addressing market concerns.

Moody’s Ratings has maintained Indonesia’s sovereign credit rating at Baa2, one notch above the investment-grade threshold, while revising the outlook from stable to negative, citing policy risks and the potential fiscal burden of several government programs.

Finance Minister Purbaya Yudhi Sadewa said Moody’s assessment would likely change once more recent economic data is taken into account. “Even though there are programs that they have doubts about, our economy will grow faster. Gradually, those doubts will fade,” Minister Purbaya told reporters at the Ministry of Finance in Jakarta on Friday, February 6, 2026, as quoted by Antara.

Minister Purbaya said the negative outlook could have been different if Moody’s Ratings had waited for the release of Indonesia’s fourth-quarter 2025 economic data. 

Indonesia’s economy expanded by 5.39 percent year on year in the October–December period, the strongest quarterly growth in 2025, although it fell slightly short of the government’s 5.45 percent target.

According to Minister Purbaya, rating agencies primarily assess a government’s capacity and commitment to servicing its debt. “They essentially assess whether we are able to pay our debts and whether we are willing to pay our debts. We fulfill both, so there should be no problem,” he said.

Addressing concerns that government programs could put pressure on public finances, Minister Purbaya said the government would closely oversee budget implementation to ensure optimal absorption. 

“We will ensure that the Free Nutritious Meals program is well-targeted, effective, and efficient. That is what I will be looking at. There must be no uncontrolled waste there, as that may be one of Moody’s concerns,” he said.

Minister Purbaya added that the State Budget was moving in the right direction. “The deficit is under control, and the economy is improving. These improvements are being achieved at relatively minimal cost,” he said.

He also said the government was working to lift economic growth over the medium term. “Going forward, we are targeting growth of around 6 percent,” Minister Purbaya said.

Moody’s Ratings has emphasized the importance of maintaining policy predictability, effective public communication, and strong coordination among government institutions amid ongoing policy and governance changes. The agency has also highlighted the need to strengthen state revenue to support priority spending and sustain higher economic growth. ***