Indonesian President Prabowo Subianto has replaced Finance Minister Purbaya Yudhi Sadewa in a long-awaited Cabinet reshuffle, replacing the outspoken economist with his deputy Suahasil Nazara just hours after returning to Indonesia from an official visit to India.
Suahasil, a former academic and veteran bureaucrat, headed the Finance Ministry’s Fiscal Policy Agency (BKF) from 2016 to 2019 before becoming deputy finance minister, a position he has held since the previous administration.
“I swear by God that I will remain loyal to the 1945 Constitution of the Republic of Indonesia and will faithfully implement all laws and regulations in the dedicated service of the nation and the state,” said Suahasil, as he recited the oath of office in a ceremony at the Presidential Palace in Central Jakarta on Sept 14.
Purbaya’s departure comes after months of speculation over his position amid investor concerns over Indonesia’s fiscal policy.
The economist, who previously headed Indonesia’s Deposit Insurance Corporation (LPS), took over from long-serving finance minister Sri Mulyani Indrawati in September 2025. He arrived promising to accelerate the economy, arguing that Prabowo’s target of 8 per cent annual growth was achievable.
Growth, however, remained at around 5 per cent during his year in office, well short of the President’s longer-term target.
Purbaya also attracted attention for a plain-speaking style that occasionally landed him in controversy.
In April, he suggested that countries bordering the Strait of Malacca could consider charging ships to use one of the world’s busiest maritime routes. The remarks drew attention across the region, prompting the government to clarify that Indonesia had no plans to impose such charges and remained committed to international maritime law.
The shake-up is Prabowo’s fifth Cabinet reshuffle since taking office in October 2024.
Bloomberg
