President Prabowo Subianto dismissed Finance Minister Purbaya Yudi Sadewa on the 14th and named Deputy Finance Minister Suahasil Nazara as his successor, the presidential palace announced. The shake‑up, the second in under a year, underscores the government’s urgency to rebuild investor confidence.
Suahasil, a 55‑year‑old technocrat who has served as deputy finance minister since 2019, was sworn in by President Prabowo on the same day, according to state television footage. After taking office he emphasized that “credible state‑budget management is the top priority” and pledged to keep the fiscal deficit below the statutory ceiling of 3 % of GDP.
“I will continue to strive for credible state‑budget management, earn trust through dialogue with the public, and support the government’s key policy initiatives through the budget,” he said.
Purbaya had become finance minister in September 2025 after heading the Indonesia Deposit Insurance Corporation. He succeeded Sri Mulyani Indrawati, who had led the ministry for roughly a decade, but was replaced after just over a year amid mounting economic pressures.
During his tenure the rupiah weakened sharply, the fiscal deficit widened and his aggressive liquidity‑provision policy created friction with the central bank. Investors grew concerned about the direction of Indonesia’s fiscal policy and the reputation the ministry had long held for prudent budget management.
The cabinet reshuffle comes as investors are closely watching Indonesia’s fiscal outlook amid a series of large‑scale spending programs launched by Prabowo’s administration, including a free school‑meal scheme and expanded social‑security outlays.
Market Welcomes Technocrat Appointment
Suahasil previously led the Fiscal Policy Agency at the finance ministry and held senior roles at the National Development Planning Agency. He is regarded as a key architect of Indonesia’s fiscal framework.
“Suahasil’s appointment as finance minister will likely be received positively by the market,” said Henry Wibowo, co‑founder of AlphaGate Capital. He noted that Suahasil’s deep experience in fiscal policy and economic management would reinforce confidence in continued prudent stewardship.
Lavanya Venkateswaran, senior ASEAN economist at OCBC, also praised the choice, highlighting Suahasil’s technocratic background and familiarity with Indonesia’s fiscal conditions and broader economic challenges.
The government has repeatedly pledged to keep the fiscal deficit under 3 % of GDP, a benchmark it cites as essential for maintaining investor confidence and its investment‑grade credit rating. Wibowo expects fiscal discipline to be upheld, noting that “at a time when markets are particularly sensitive to fiscal risk, this should reassure investors about Indonesia’s fiscal credibility and bring greater policy certainty.”