Indonesian finance minister says ‘not strong enough reasons’ for Moody’s rating cut

Indonesian Finance Minister Purbaya Yudhi Sadewa has pushed back against Moody's Ratings' decision to lower the country's outlook, citing improving growth and controlled deficit as reasons why a credit rating downgrade is unlikely. The downgrade was announced after Moody's cited "reduced predictability in policymaking" and "less effective policy communication" from authorities. Indonesia reported faster-than-expected fourth quarter growth, which led to the change in outlook. Moody's also expressed concerns about Indonesia's investability, citing MSCI warnings last month. The country's deficit spending reached a cap of 3% of gross domestic product last year. Sadewa stated that Indonesia's economy is improving and its deficit remains under control, suggesting that a downgrade is not justified at this time.

Explore how the topics in this article connect to other news stories