Last updated on December 25, 2025
JAKARTA: Indonesia’s respected finance minister Sri Mulyani Indrawati was removed from her post on Monday in a cabinet reshuffle, with President Prabowo Subianto appointing economist Purbaya Yudhi Sadewa as her successor.
State Secretariat Minister Prasetyo Hadi announced Sri Mulyani’s departure shortly before Purbaya was sworn in.
Purbaya steps in
Purbaya has led the Indonesia Deposit Insurance Corporation since 2020 and previously held senior roles across several ministries, including deputy minister at the maritime and investment ministry. A Purdue University-trained economist, he also served as chief executive of state-owned Danareksa Securities.
Markets reacted swiftly. The Jakarta Composite Index erased earlier gains to fall 1.3%, while the rupiah was little changed, having risen as much as 0.7% against the US dollar earlier in the day.
End of an era for Sri Mulyani
Sri Mulyani, one of Indonesia’s longest-serving finance ministers, worked under three presidents. She was lauded for reforming the taxation system and steering Southeast Asia’s largest economy through crises, including the global financial crisis and the COVID-19 pandemic.
Between her first and second stints in government, she was a managing director at the World Bank, bolstering her international reputation as a reformist technocrat.
Her removal follows two weeks of nationwide protests calling for a fairer taxation system. Unrest intensified in late August when looters broke into her home, underscoring public anger.
Political recalibration
The reshuffle marks a significant shift for President Prabowo, who is balancing economic challenges with growing social unrest. By appointing Purbaya, seen as a steady technocrat, the government signals continuity in fiscal management while trying to ease political pressure.
