Jakarta, February 7, 2026 – The Europe Today: The government of Indonesia is seeking to ensure continued clarity in its fiscal policy framework by asking sovereign wealth fund Danantara to explain recent institutional adjustments to credit rating agency Moody’s.
Coordinating Minister for Economic Affairs Airlangga Hartarto said on Saturday that several state asset and dividend management functions are now coordinated through Danantara, which also carries an investment mandate. “This is what needs to be explained,” he said, underscoring the importance of transparent communication with international stakeholders.
The move follows a recent Moody’s report that emphasized the need for clear policy direction, effective public communication, and strong coordination among ministries and agencies amid ongoing changes in Indonesia’s economic governance. Airlangga said the rating agency had sought clarification on the country’s fiscal policy direction following the establishment of Danantara, particularly to ensure consistency and transparency in fiscal management.
Under the revised framework, dividends that were previously recorded as non-tax state revenue are now managed through Danantara, Airlangga explained. As a sovereign wealth fund, Danantara also plays an investment role within the government’s broader economic strategy, a shift that authorities believe requires careful explanation to international observers.
He added that this year’s state budget reflects adjustments in its composition, especially regarding investment management, while stressing that Indonesia’s fiscal discipline remains unchanged. From a macroeconomic perspective, the government remains committed to keeping the budget deficit at no more than 3 percent of gross domestic product and maintaining the debt-to-GDP ratio below 40 percent.
Moody’s has maintained Indonesia’s sovereign credit rating at Baa2, one notch above the investment-grade threshold, but revised the outlook from stable to negative. In its assessment, the agency highlighted the importance of maintaining policy clarity, strong communication, and effective inter-agency coordination as Indonesia continues to implement changes in its economic policy and governance framework.
