The move was just one of several shake-ups and restructuring done during Purbaya’s tenure.
Quoting an anonymous source, Suara news portal reported that Purbaya has been trying to replace “Sri Mulyani’s people” ever since he became minister.
The most senior ranking were Febrio Nathan Kacaribu and Luky Alfirman who were removed in April from their positions as director-general of economic and fiscal strategies and director-general of state budget, respectively.
Both men were appointed to their positions by Sri Mulyani in May 2025, just months before Purbaya became minister.
Suahasil had served as Sri Mulyani’s deputy minister for five years, and kept his position following Purbaya’s appointment.
Bhima said another possible reason could be Purbaya’s recent standoff with officials from sovereign wealth fund Danantara Indonesia.
In early September, Purbaya told the media that Danantara would transfer 120 trillion rupiah (US$6.8 billion) of its profits to the government to help meet this year’s fiscal deficit target.
Danantara officials later said no such plan was discussed.
“Then there was the issue of delayed tax refunds, which made a lot of businesses unhappy,” Bhima said.
He was referring to Purbaya’s decision in February to put tax refund applications through a lengthier verification process, believing that it would save the country billions of dollars.
“So Purbaya’s approach to internal coordination, including his communication style, became increasingly problematic over time. He was overconfident. That was ultimately what led to his removal in the reshuffle,” Bhima said.
Agung Baskoro, a political analyst at Jakarta-based think-tank Trias Politika Institute, said that relationships between the Finance Ministry and other government institutions deteriorated under Purbaya.
The reshuffle, he told CNA, could be aimed at “maintaining harmony between the central and regional governments, as well as working relations between the Ministry of Finance and other ministries that are stakeholders of the Finance Ministry”.
Speaking to reporters on Tuesday, Purbaya admitted that his dismissal was “partly” the result of his decision to reassign hundreds of ministry officials.
He declined to say what the other reasons for his dismissals were, saying instead: “It’s the president’s prerogative.”
CNA has reached out to Purbaya for comment but has not received a response.
