JakartaPost-Sept 9, 2025
Finance Minister Sri Mulyani Indrawati bowed out on Monday in the first major cabinet reshuffle under President Prabowo Subianto, shocking markets as she ended her run as the nation’s longest serving finance chief and leaving the government to find a way to restore calm. Her departure is by and large the biggest blow to the ambitions of the current administration, which had relied on her global reputation and sound fiscal management to ease the transition from a government that consistently kept economic growth at around 5 percent. After serving as finance chief under three different presidents over 14 years with a stint at the World Bank in between, rumors of her impending resignation had emerged multiple times in the past year, growing stronger after her house was ransacked on Aug. 31 during the recent riots. The cabinet shake-up, which also saw the chief security minister removed and a new ministry established, follows more than a week of widespread protests fueled by economic grievances that escalated into rioting and looting after the police killed an innocent bystander. The Prabowo administration replaced her with seasoned economist Purbaya Yudhi Sadewa, who has headed the Indonesia Deposit Insurance Corporation (LPS) since 2020 and has maintained close ties to senior officials across different administrations.
In response to Sri Mulyani’s departure, the Indonesia Stock Exchange (IDX) composite fell 1.28 percent at Monday’s close, with the sharpest drop occurring during the reshuffled line-up at around 4 p.m. The rupiah also weakened, slipping from around Rp 16,300 per US dollar before the ceremony to as low as Rp 16,572 a few hours later. Institute for Development of Economics and Finance (Indef) economist Fadhil Hasan said Purbaya was a “decent economist” but lacked direct experience in fiscal management. In response to Sri Mulyani’s departure, the Indonesia Stock Exchange (IDX) composite fell 1.28 percent at Monday’s close, with the sharpest drop occurring during the reshuffled line-up at around 4 p.m. The rupiah also weakened, slipping from around Rp 16,300 per US dollar before the ceremony to as low as Rp 16,572 a few hours later. Read more at:
https://www.thejakartapost.com/indonesia/2025/09/09/sri-mulyani-ousted-in-major-reshuffle.html.
