Indonesia President Prabowo Subianto Dismisses Finance Minister Purbaya Yudhi Sadewa
President Prabowo Subianto has replaced Finance Minister Purbaya Yudhi Sadewa with deputy Suahasil Nazara following a period of economic volatility.
POLICY WIRE — Jakarta, Indonesia — President Prabowo Subianto has officially removed Finance Minister Purbaya Yudhi Sadewa from his post, appointing his deputy, Suahasil Nazara, to lead the ministry, according to an announcement from the president’s office on Monday, Sep 14.
The transition was confirmed as Suahasil Nazara arrived at the state palace for a formal swearing-in ceremony. The move followed an abrupt departure by Purbaya from a parliamentary hearing earlier that same day.
Purbaya had served in the role for just over a year, having been appointed on Sep 8, 2025, to succeed long-serving minister Sri Mulyani Indrawati. Before his tenure, Purbaya was known as a technocrat who previously managed a deposit insurance agency.
During his time in office, Purbaya gained a reputation for an unfiltered communication style. His tenure was marked by significant economic challenges, including a weakening rupiah and a growing fiscal deficit, alongside friction with the central bank over liquidity injection policies.
📄 POLICY WIRE WHITEPAPER PUBLISHED: PAKISTAN’S NATIONAL SECURITY POLICY PRIORITIES
Controversy also surrounded a proposal by Purbaya to levy ships in the Malacca Strait, a plan quickly dismissed by Foreign Minister Sugiono due to international law concerns. Additionally, a recent claim regarding a 120 trillion rupiah (US$6.8 billion) transfer from the Danantara Indonesia sovereign wealth fund was disputed by the fund’s leadership.
Credit rating agencies downgraded Indonesia’s outlook twice this year, citing fiscal spending plans and policy uncertainty within the US$1.4 trillion G20 economy. Despite persistent rumors of his resignation in recent months, officials had previously maintained that Purbaya would remain in his position.
Following his appointment, Suahasil Nazara, who has served as deputy finance minister since 2019, emphasized his commitment to fiscal discipline. He stated that he was instructed by the president to prioritize the country’s financial health and credibility, specifically aiming to keep the fiscal deficit below the 3 per cent of gross domestic product limit.
Suahasil pledged to maintain a trustworthy state budget and ensure that public spending effectively supports the government’s priority programs. He noted that the ministry would focus on fostering a healthy budget to stimulate economic growth.
Reporting by Policy-Wire (PW)
