TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search results
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search resultsFiscal discipline remains intact, govt insists, after Moody’s outlook cut
State Secretary Prasetyo Hadi said on Monday that the government continued to adhere to fiscal rules and had not breached statutory deficit limits, stressing that budget management remained on a prudent footing.
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
State Secretary Prasetyo Hadi talks to journalists on July 25, 2025, during a press briefing at the Presidential Palace in Jakarta. (Antara/Galih Pradipta)
T
he government has asserted that it remains confident in its ability to keep the budget deficit under control, after credit ratings agency Moody’s Investors Service cut the country’s sovereign outlook to negative from stable.
State Secretary Prasetyo Hadi said on Monday the government continued to adhere to fiscal rules and had not breached statutory deficit limits, stressing that budget management remained on a prudent footing.
“There have been no violations. The deficit ceiling is still being maintained,” Prasetyo told reporters at the State Palace.
The government was focused on strengthening economic fundamentals by boosting real-sector activity and accelerating early-year spending to support growth, he said, adding that the administration remained optimistic about its fiscal management and continued to engage with international stakeholders.
“What matters is that we stay focused on ensuring strong economic fundamentals, pushing the real sector, and maximizing early-year government spending,” Prasetyo said.
Moody’s last week affirmed Indonesia’s sovereign credit rating at Baa2, one notch above the minimum investment-grade level, but revised the credit rating outlook to negative.
The ratings agency cited concerns over policy effectiveness and signs of weakening governance, trends that it said could erode the country’s long-established policy credibility if they persisted.
