February 7, 2026 | 04:34 pm
TEMPO.CO, Jakarta - Coordinating Minister for Economic Affairs Airlangga Hartarto has urged Indonesia's Investment Management Agency for Nusantara’s Energy, known as Danantara, to directly engage with global credit rating agency Moody's to clarify the country’s fiscal policy direction.
Airlangga said the explanation is necessary to address Moody’s concerns over rising policy uncertainty in Indonesia’s economic management.
“Danantara now plays a central role as an investment management entity, so it needs to provide a clear explanation,” Airlangga said after attending the APEC Business Advisory Council meeting at the Shangri-La Hotel in Jakarta on Saturday, February 7, 2026.
According to Airlangga, Moody’s requires clarity on how Indonesia’s fiscal policy has been implemented since Danantara became fully operational. He said a direct explanation could help counter perceptions of uncertainty highlighted in Moody’s latest rating report.
He noted that the establishment of Danantara has introduced changes to the state’s financial management system.
Dividends from state-owned enterprises (SOEs), which were previously recorded as non-tax state revenue, are now managed by Danantara. The agency also functions as a sovereign wealth fund with an investment-oriented mandate.
“This year there are adjustments in the state budget, particularly related to investments,” Airlangga said.
Despite the structural changes, Airlangga emphasized that the government remains committed to fiscal discipline. He said the budget deficit will be capped at 3 percent of gross domestic product, while the government’s debt-to-GDP ratio will be maintained below 40 percent.
In this context, Airlangga said Danantara plays a crucial role in transparently explaining Indonesia’s fiscal framework and investment strategy to Moody’s in order to maintain market confidence and economic stability.
On February 5, 2026, Moody’s revised the outlook on Indonesia’s sovereign credit rating from stable to negative, while maintaining the country’s rating at Baa2, one notch above the investment-grade threshold.
Moody’s said the outlook revision reflected rising policy uncertainty that could weaken governance and policy effectiveness. The agency also cited increasing fiscal pressures driven by higher government spending alongside a relatively narrow revenue base.
These pressures include the expansion of social programs such as the Free Nutritious Food initiative and public housing schemes, which are being funded through budget reallocations and spending cuts in several ministries, including infrastructure maintenance.
Moody’s also flagged the establishment of Danantara as a source of uncertainty related to financing, policy direction, and investment priorities.
The agency noted that Danantara manages state-owned enterprise assets valued at more than US$900 billion, equivalent to around 60 percent of Indonesia’s gross domestic product in 2025.
Ilona Estherina contributed to the writing of this article.
Read: Indonesia's Minister Airlangga Responds to Moody's Rating Downgrade
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