Indonesia President Prabowo Sacks Finance Minister, Names Deputy

Post by : Saif

Indonesian President Prabowo Subianto has removed Finance Minister Purbaya Yudhi Sadewa from his post and appointed Deputy Finance Minister Suahasil Nazara as his replacement.

The leadership change comes as Southeast Asia’s largest economy faces investor concerns over fiscal policy, government spending and uncertainty surrounding economic management.

Suahasil Nazara Takes Charge as Finance Minister

Suahasil Nazara, who had served as deputy finance minister since 2019, was among senior officials who attended the swearing-in ceremony at the state palace on Monday.

After taking office, Nazara said his priority would be to maintain a credible and reliable state budget. He also pledged to keep Indonesia’s fiscal deficit below the legal limit of 3% of gross domestic product.

Nazara said government spending should continue supporting Prabowo’s priority programs while maintaining confidence in the country’s fiscal management.

Purbaya Removed After One Year in Office

Purbaya, 61, was removed only days after completing one year as finance minister. He had taken the position in September 2025, replacing long-serving Finance Minister Sri Mulyani Indrawati.

Prabowo had appointed Purbaya as part of an effort to promote stronger economic growth and more aggressive fiscal policies.

His tenure, however, was marked by several economic challenges, including weakness in the Indonesian rupiah and an increase in the fiscal deficit.

Economic Policies Raise Investor Concerns

Purbaya's approach included injecting liquidity into banks to encourage lending and economic activity. The policy created differences with Indonesia’s central bank over how monetary and fiscal measures should be managed.

Investor confidence has also been affected by uncertainty over government spending and economic policy.

Two major credit-rating agencies moved Indonesia’s outlook from positive to negative during 2026. The decisions reflected concerns about policy uncertainty and government spending plans in the $1.4 trillion G20 economy.

Read more: Indonesian Teen’s Diary Shows Lonely Path to Jakarta Mosque Bombing

Danantara Transfer Dispute Adds Pressure

Another controversy emerged over Indonesia’s sovereign wealth fund, Danantara Indonesia.

Purbaya had announced that Danantara would transfer 120 trillion rupiah, equivalent to about $6.8 billion, in profits to the government. The money was expected to help meet the government’s fiscal deficit target for the year.

However, Danantara’s head later said that no such transfer plan had been discussed.

The disagreement added to questions surrounding fiscal planning and communication between key economic institutions.

New Finance Minister Faces Key Challenges

Nazara now takes charge at a time when Indonesia is seeking stronger economic growth while maintaining control over government finances.

His immediate challenge will be to restore confidence among investors and analysts while keeping the fiscal deficit within the legally permitted limit.

Maintaining clear communication about government spending and ensuring that budget policies support economic priorities will also be central to his new role.

The appointment signals a fresh phase for Indonesia’s economic management under Prabowo as the government attempts to balance growth ambitions with fiscal discipline and investor confidence.

#trending #latest #Indonesia #PrabowoSubianto #IndonesiaEconomy #FinanceMinister #SuahasilNazara #PurbayaYudhiSadewa #IndonesianGovernment #EconomicPolicy #FiscalPolicy #InvestorConfidence #Rupiah #G20 #SoutheastAsia #WorldNews #BusinessNews