Moody’s has cut its credit rating outlook for Indonesia to “negative”, citing policy uncertainty under President Prabowo Subianto, in the latest warning on market quality in south-east Asia’s largest economy.
The change from a “stable” outlook comes a week after global index provider MSCI said Indonesia could lose its emerging-market status over “fundamental investability” issues, triggering a rout in stocks.
Moody’s flagged issues including policy uncertainty, weak governance, fiscal deterioration and ineffective government spending. It maintained its investment-grade Baa2 rating.
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