Indonesian Finance Minister Sri Mulyani removed as Prabowo reshuffles Cabinet following weeks of protests
Sri Mulyani, one of Indonesia's longest-serving finance ministers, and coordinating minister for politics and security Budi Gunawan were booted from the Cabinet.
Indonesia's Finance Minister Sri Mulyani Indrawati speaks during an economic event titled Strengthening Indonesia's Economic Resilience Amid the Wave of Trade Tariff Wars in Jakarta on Apr 8, 2025. (Photo: AFP/Yasuyoshi Chiba)
JAKARTA: Indonesia’s president announced a Cabinet reshuffle on Monday (Sep 8), replacing key economic and security ministers after deadly protests erupted across the country over lawmakers' perks.
Five ministers lost their jobs, including Finance Minister Sri Mulyani Indrawati, a widely respected technocrat and former managing director of the World Bank, as well as Budi Gunawan, the coordinating minister for politics and security.
Sri Mulyani's replacement, economist Purbaya Yudhi Sadewa, has been sworn in.
Purbaya has been head of the Indonesia Deposit Insurance Corporation since 2020. Prior to that, he served in various roles at several ministries, including deputy minister at the maritime and investment ministry.
Purbaya, who has master's and doctoral degrees in economics from Purdue University, has also served as chief executive of state-owned brokerage Danareksa Securities.
Speaking to journalists shortly after he was sworn in, Purbaya said that 8 per cent economic growth was "not impossible" and that he would find ways to quickly boost the economy.
Budi's replacement has not yet been announced, according to Indonesia's Antara news agency.
The reshuffle also involved the Ministry of Protection of Indonesian Migrant Workers, the Ministry of Cooperatives and SMEs, as well as the Ministry of Youth and Sports.
"Based on various considerations, input, and continuous evaluations, the president this afternoon decided to reshuffle several ministerial positions in the Red and White Cabinet," Minister of State Secretary Prasetyo Hadi said in a press statement in Jakarta, as quoted by Antara.
Indonesian stocks reversed early gains, and the rupiah spiked after the announcement that Sri Mulyani had been booted out of the Cabinet.
Sri Mulyani was one of Indonesia's longest-serving finance ministers and had worked under three presidents. She won plaudits for reforming the taxation system and for her role in steering Southeast Asia's largest economy through several crises, including the pandemic and the global financial crisis.
In between her first and second stints as finance minister, she served as a managing director of the World Bank.
During some of the protests in late August, looters broke into Sri Mulyani's home in South Tangerang, a city neighbouring the capital Jakarta.
Her neighbour said the house was ransacked in two waves. The first involving dozens of motorcycles ridden by two to three people each and the second involving about 150 people. A television, sound system, living room decorations and clothes were among the items taken.
"Mulyani's departure, though not unexpected after recent unrest, marks the end of an era of fiscal credibility," said Mohit Mirpuri, fund manager, SGMC Capital.
"She's left strong foundations, and with experienced technocrats/candidates (like Suahasil Nazara or Chatib Basri) in the wings, I expect Indonesia will regroup quickly."
