JAKARTA: Indonesia’s President Prabowo Subianto has sacked Finance Minister Purbaya Yudhi Sadewa and appointed his deputy as his replacement, the president’s office said on Monday (Sep 14).
Deputy Finance Minister Suahasil Nazara was among the senior officials who arrived at the state palace for a swearing-in ceremony. Earlier on Monday, Purbaya had left in the middle of a parliamentary hearing.
Purbaya was appointed just over a year ago on Sep 8, 2025, replacing longtime finance minister Sri Mulyani Indrawati, who served under three presidents.
Previously a low-profile technocrat best known for leading a deposit insurance agency, Purbaya quickly became one of the more recognisable faces in government with what observers said was his brash and unfiltered style.
In April, Purbaya had floated the idea of imposing a levy on ships passing through the Malacca Strait, as part of a push to maximise the country’s strategic position along global trade and energy routes.
A day later, Indonesia’s foreign minister Sugiono said the country would not do so as this would not be consistent with international law.
Purbaya’s time in office was marked by a number of economic shocks, including a plummeting rupiah currency and a ballooning fiscal deficit.
His policy of injecting quick liquidity into banks to spur growth also created friction with the central bank.
Two ratings agencies downgraded Indonesia’s credit rating outlook from positive to negative this year, citing policy uncertainty and fiscal spending plans, battering sentiment on the US$1.4 trillion G20 economy.
The latest controversy surrounding Purbaya was his sudden announcement that sovereign wealth fund Danantara Indonesia would transfer 120 trillion rupiah (US$6.8 billion) of its profits to the government to help meet this year’s fiscal deficit target. The head of Danantara later said no such plan was discussed.
In recent months, Purbaya has had to deny speculation that he was resigning from office amid news of lacklustre markets.
He told Bloomberg Technoz the rumour was not true in June, and State Secretary Prasetyo Hadi also said on the same day Purbaya was not departing.
“If anything, now is the time for tighter coordination” between the Finance Ministry, Bank Indonesia, Financial Services Authority and Coordinating Ministry for Economic Affairs, Prasetyo said.
