Politics · Indonesia · 17 hrs ago
Indonesia’s political turmoil could put pressure on its debt rating
Political turmoil in Indonesia has raised concerns that the country’s sovereign debt rating could come under pressure.
Finance Ministry official Hidayat Amir said rating agencies consider political stability, but he expects short-term unrest to matter less than the country’s economic fundamentals.
He said Indonesia’s democracy and its ability to resolve conflicts could count in its favor.
Economist Dipo Satria Ramli warned that prolonged political uncertainty could weaken confidence among investors and businesses.
He said that could lead to a lower rating or higher risk premiums, pushing up government bond yields and borrowing costs.
Higher interest costs could also add to government spending pressures and make loans more expensive.
Fitch’s rating for Indonesia remains BBB, investment grade, but its outlook was changed from stable to negative in March 2026.
Amir said rating agencies will review the situation and assess Indonesia as a whole.
Indonesia’s political turmoil could increase pressure on the country’s sovereign debt rating, according to an economist quoted by CNBC Indonesia.
A senior Finance Ministry official said he remained optimistic that rating agencies would maintain a positive outlook, arguing that short-term turmoil would not be decisive.
Economist Dipo Satria Ramli warned that prolonged political uncertainty could weaken market and business confidence and raise borrowing costs.
Fitch’s rating methodology gives substantial weight to governance indicators and also considers political risks.
Fitch had changed Indonesia’s long-term foreign-currency rating outlook to negative from stable, while its rating remained BBB as of March 2026.
- Who
- Indonesia’s government, Fitch Ratings and economist Dipo Satria Ramli are central to the report.
- What
- Political turmoil could affect Indonesia’s sovereign rating, investor confidence and borrowing costs.
- When
- The article was published on November 13, 2026, and describes turmoil over the preceding two weeks.
- Where
- Indonesia.
- Why
- Prolonged political uncertainty could weaken confidence and affect assessments of governance and political stability.
Finance Ministry
Dipo Satria Ramli
Rating impact
Finance Ministry
Hidayat Amir said short-term political turmoil would not have a significant effect on ratings, which also depend on economic fundamentals.
Dipo Satria Ramli
Ramli said prolonged political uncertainty could reduce confidence and could lead to a sovereign rating downgrade.
Indonesia’s debt rating was BBB, or investment grade, according to the article.
Political turmoil increased uncertainty in Indonesia, the article reported.
Hidayat Amir and Dipo Satria Ramli discussed the possible rating implications with CNBC Indonesia.
- Fitch rating
- BBB as of March 2026
- Fitch outlook
- Negative, changed from stable
- Governance indicators
- 18.1% weight in Fitch’s Sovereign Rating Model
- Political turmoil
- Took place over the two weeks before publication
- Potential bond yield example
- 7.44% for five-year government bonds, potentially rising to 7.75% in Ramli’s example
What people are saying
Saya sih cukup confidence, kalau kita lihat kita biasa mengelola. Indonesia maksudnya sudah matang demokrasinya
Sangat bisa (turun rating), karena tata kelola dan stabilitas politik atau structural features memang punya bobot paling besar dalam metodologi Fitch