Indonesia’s Purbaya Pushes Back as Rating Warning Hits Markets

Indonesia’s Finance Minister Purbaya Yudhi Sadewa pushed back after Moody’s Ratings lowered the outlook on the nation’s credit rating to negative and triggered further selling of local stocks, bonds and the rupiah.

Indonesia’s Baa2 rating outlook was cut on Thursday from stable on concerns of policy uncertainty and weakening governance under President Prabowo Subianto’s administration. Moody’s warned of a downgrade if there is a sustained increase in the budget deficit, prolonged currency depreciation or capital flows, or a material weakening of state-owned firms.