Indonesia has room to breach its legal fiscal deficit ceiling of 3% of GDP without triggering an immediate ratings downgrade, as long as it is only a temporary response to economic disruptions caused by the war in the Middle East, a director with Fitch Ratings said on Thursday. Fitch Ratings last month cut Indonesia's credit rating outlook to negative from stable, citing increasing uncertainty and weakened policymaking credibility - one of a string of setbacks in 2026 for Southeast Asia's largest economy.