Jakarta. Indonesia is bracing for heightened global economic uncertainty as escalating geopolitical tensions and a recent outlook downgrade by Fitch Ratings add pressure to the country’s macroeconomic landscape, Chief of Economic Affairs Minister Airlangga Hartarto said on Thursday.

Airlangga noted that global economic conditions are increasingly volatile, driven not only by financial assessments from rating agencies but also by geopolitical conflicts, particularly tensions involving Iran that could disrupt global logistics routes and commodity prices.

“Indonesia’s economic conditions are influenced not only by Fitch’s assessment but also by the ongoing war. The global outlook is expected to shift significantly amid developments in the Middle East,” said Airlangga Hartarto after attending the National Semiconductor Talent Briefing in Jakarta.

His remarks came after Fitch revised Indonesia’s sovereign outlook to negative from stable, signaling rising concerns over policy credibility and fiscal risks despite maintaining the country’s investment-grade rating.

Airlangga said the government would carefully review the rating agency’s decision, while continuing efforts to strengthen state revenue collection.

One of the key initiatives is the implementation of the Coretax digital platform at the Finance Ministry, designed to modernize Indonesia’s tax administration system.

The platform integrates several core tax processes, including taxpayer registration, tax return reporting, and payment systems, into a unified digital infrastructure.

Through the system, the government expects to improve taxpayer compliance, enhance service efficiency, and strengthen transparency in tax administration.

“That is why one of the steps being pushed forward is the Coretax system at the Finance Ministry,” Airlangga said.