Indonesia’s well-regarded finance minister Sri Mulyani Indrawati was removed from her position on Monday (Sep 8) as part of a broader Cabinet reshuffle, with the president appointing an economist to replace her.
State Secretariat Minister Prasetyo Hadi announced Sri Mulyani’s departure shortly before President Prabowo Subianto swore in Purbaya Yudhi Sadewa as her replacement.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.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.
