Fitch Downgrades Indonesia's Credit Outlook to Negative

Fitch Ratings has downgraded Indonesia's sovereign credit rating outlook to negative from stable, according to multiple Indonesian media reports.

Detik.com reported that Fitch maintained Indonesia's rating at BBB but revised the outlook due to increased policy uncertainty and concerns over the consistency and credibility of policy mix amid centralized policymaking. The country's coordinating ministry for economic affairs is seeking information regarding the reports.

This action follows a similar move by rating agency Moody's last month, which also cut its outlook for Indonesia to negative, citing reduced predictability in policymaking. Investors have expressed growing concerns about policy uncertainty in the $1.4 trillion economy, including a widening fiscal deficit and central bank independence.