Moody’s Investors Service changed Indonesia’s sovereign credit rating outlook from stable to negative on February 5, 2026, while affirming the Baa2 rating, citing concerns over policy credibility. The agency highlighted that reduced predictability and coherence in policymaking, along with less effective policy communication, have increased risks to policy credibility, which could undermine governance, economic performance, and fiscal stability. These developments are reflected in higher equity and foreign-exchange market volatility, and, if sustained, could erode Indonesia’s long-standing policy credibility that has historically supported strong economic growth and macroeconomic stability. The rating affirmation reflects Indonesia’s structural strengths, including natural resource endowments, favorable demographics, and prudent fiscal and monetary policies, which support medium-term growth. Standard & Poor's credit rating for Indonesia stands at BBB with a stable outlook.