Fitch Revised Indonesia Outlook to Negative; Affirmed Sovereign Rating at BBB

MACROECONOMY 
Fitch Revised Indonesia Outlook to Negative; Affirmed Sovereign Rating at BBB 
Fitch Ratings revised Indonesia’s Long-Term Foreign-Currency Issuer Default Rating outlook to Negative from Stable while affirming the rating at BBB on 04-Mar-26, citing rising policy uncertainty and concerns over weakening fiscal discipline. The agency warned that looser fiscal and monetary policy, higher social spending, and potential changes to the 3% fiscal deficit ceiling could undermine policy credibility, investor sentiment, and external buffers. Despite the outlook downgrade, Fitch highlighted Indonesia’s macroeconomic stability, moderate debt level projected at 41% of GDP in 2026, and resilient ~5% GDP growth outlook, though weak revenue intake and governance indicators remain key constraints. (Fitch Ratings) 

INDUSTRY 
Drone Attack Targeted Saudi Arabia’s Ras Tanura Oil Facility 
A drone attack targeted Saudi Aramco’s Ras Tanura oil facility on 04-Mar-26, though authorities said the incident caused no damage and did not disrupt oil supply. Ras Tanura is Saudi Arabia’s largest domestic refinery and a key crude export terminal. The incident occurred amid heightened regional tensions as shipping through the Strait of Hormuz remains disrupted following US and Israeli strikes on Iran. (Reuters)

COMPANY 
DCI Indonesia (DCII) Posted 25.7% YoY Net Profit Growth in FY25 
DCII recorded net profit of IDR 1.00 tn (+25.67% YoY) in FY25, rising from IDR 796.47 bn in FY24, supported by strong growth in data center demand. Total revenue increased to IDR 2.54 tn (+40.33% YoY) from IDR 1.81 tn, while cost of revenue rose to IDR 1.16 tn from IDR 755.4 bn previously. As a result, gross profit climbed to IDR 1.37 tn, up from IDR 1.05 tn in the prior year. Earnings per share also improved to IDR 420/sh from IDR 334/sh in FY24. (Emitennews)