Indonesia: Moody’s cuts outlook, affirms rating – DBS

According to DBS Group Research, Moody's has downgraded Indonesia's rating outlook from 'stable' to 'negative' while maintaining a Baa2 rating. This shift reflects concerns about Indonesia's economic growth and political stability. High inflation and vulnerability to external shocks have been highlighted, potentially affecting investor sentiment. Despite the Baa2 rating remaining unchanged, the outlook downgrade raises worries about capital outflows and currency depreciation. Market attention is focused on potential moves in the Indonesian rupiah as this negative outlook could diminish investor confidence. How the Indonesian government addresses these challenges and strives for economic stability will be a crucial focus moving forward.