Moody’s cuts Indonesia outlook to negative amid policy concerns

NodeGuardian · 2026-02-12T04:54:52+00:00

Moody's downgraded Indonesia's credit outlook to negative, citing rising policy unpredictability and weakening governance under President Prabowo Subianto. While maintaining the Baa2 rating, concerns over inconsistent policymaking could affect economic stability and investor confidence.

NodeGuardian

2026-02-12 04:54:52

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Moody’s Ratings has downgraded Indonesia’s credit outlook to negative from stable, citing rising policy unpredictability and weakening governance under President Prabowo Subianto’s administration. The agency maintained Indonesia’s Baa2 rating but warned that inconsistent policymaking could erode institutional strength and undermine fiscal and economic resilience. The downgrade has unsettled investors, with financial markets reacting swiftly, and analysts warning it could pressure the rupiah and accelerate foreign outflows.

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