JakartaGlobe-Sept 15, 2025
Indonesia’s financial markets faced turbulence last week as President Prabowo Subianto’s decision to reshuffle his cabinet — including replacing the finance minister — triggered a wave of foreign capital outflows worth Rp 14.24 trillion ($869 million) in just three days.
Data from Bank Indonesia showed the largest withdrawals occurred in the central bank’s rupiah securities (SRBI) at Rp 6.57 trillion, followed by Rp 5.45 trillion from government bonds (SBN) and Rp 2.22 trillion from equities. Analysts say the sudden pullback underscores rising investor unease over policy continuity. Yusuf Rendy Manilet, a researcher at the Center of Reform on Economics (Core) Indonesia, noted that the timing of the selloff, coinciding with the cabinet changes, highlighted strong domestic factors. He explained that SRBI is usually considered relatively safe and rarely sees such withdrawals. “This indicates that some investors are questioning fiscal and monetary coordination amid the reshuffle,” he said, as quoted by Investor Daily newspaper on Monday. According to Yusuf, the appointment of a new finance minister has become the central concern. “Leadership transitions can be perceived as potential shifts in policy direction, whether on fiscal discipline or economic priorities, leading to doubts among investors,” he explained. “This is more of an early warning than an economic shock.” On September 8, President Prabowo appointed Purbaya Yudhi Sadewa as finance minister, replacing Sri Mulyani Indrawati. He also introduced a new Ministry of Hajj and Umrah, replaced the ministers for cooperatives and migrant worker protection, and removed Youth and Sports Minister Dito Ariotedjo and Coordinating Minister for Political and Security Affairs Budi Gunawan, though their successors have yet to be named. The rapid market reaction — capital outflows and a weakening rupiah — reflects uncertainty over fiscal policy direction rather than external factors. Read more at: https://jakartaglobe.id/business/indonesia-sees-869m-outflow-after-cabinet-reshuffle
