Moody’s Warned of Rising Fiscal and Policy Risks in Indonesia

Moody’s Warned of Rising Fiscal and Policy Risks in Indonesia 
Moody’s Ratings maintained its cautious stance on Indonesia, citing policy uncertainty, fiscal sustainability risks, and limited progress in broadening the country’s revenue base. The agency flagged rising energy subsidies, concerns over the expansion of Danantara, and the govt.’s ambitious spending plans as key downside risks, while noting that fiscal discipline remains crucial to preserving Indonesia’s credit profile. Moody’s will continue to monitor foreign reserve adequacy, policy credibility, SOE health, and governance over the next 6–12 months. Meanwhile, S&P Global Ratings recently reaffirmed Indonesia’s investment-grade rating with a stable outlook, highlighting differing views among rating agencies. (Bloomberg) 

Govt. Received AAA Rating for Inaugural Panda Bond Issuance 
The Govt. announced that its inaugural Panda Bond received the highest AAA (Stable) rating from China Lianhe Credit Rating, ahead of its planned issuance on 23 Jul-26 with a target size of USD 1 bn. The bond, underwritten by Bank of China alongside several Chinese financial institutions, is expected to offer a yield of 2.3%–2.5%, supporting the Govt.'s funding diversification strategy by expanding access to China's onshore debt market. (Bloomberg Technoz) 

National Nutrition Agency (BGN) Said FY27 Budget Ceiling Yet to Be Finalized 
BGN said its proposed FY27 budget ceiling of IDR 270 tn remains under review by the Ministry of Finance and will be finalized in the 2027 State Budget (RAPBN) announcement. The agency also disclosed that its FY26 budget has been provisionally reduced to IDR 229 tn from IDR 268 tn as part of efforts to improve the governance of the Free Nutritious Meals (MBG) program. The review includes verifying MBG kitchens (SPPG), removing duplicate beneficiaries, and prioritizing funding for high-stunting regions. (Bisnis.com) 

The Govt. Planned 40,000 Thematic Aquaculture Villages by 2029 
The govt. planned to develop 40,000 thematic aquaculture villages by 2029 through the Ministry of Marine Affairs and Fisheries to strengthen food security and boost rural economies. The program, separate from the Red and White Fishermen Village initiative, will target inland villages rather than coastal fishing communities. Coordinating Minister for Food Affairs Zulkifli Hasan said the initiative aims to help villages become self-sufficient in protein and staple food production while creating new economic opportunities. (Bloomberg Technoz) 

Trump Downplayed Immediate Iran Talks Amid Escalating Middle East Conflict US 
President Donald Trump dismissed the prospect of immediate talks with Iran, saying negotiations would only resume when Tehran is ready to engage meaningfully, while vowing to respond if Iran-backed Houthi militants disrupt shipping in the Red Sea. The conflict has entered its 10th day, with continued US-Iran strikes fueling concerns over global energy supply disruptions. Brent crude has risen about 20% in Jul-26 to around USD 90/bbl, while Houthi threats against Red Sea shipping have heightened risks to oil trade and regional stability. (Bloomberg)