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Indonesia shocks markets with removal of prominent finance minister Sri Mulyani

In a surprise Cabinet reshuffle by President Prabowo, she will be replaced by Purbaya Yudhi Sadewa, chairman of the Indonesia Deposit Insurance Corporation

 Elisa Valenta
Published Mon, Sep 8, 2025 · 05:14 PM — Updated Tue, Sep 9, 2025 · 04:57 PM
    • Dr Sri Mulyani Indrawati was regarded as a strong advocate of fiscal discipline and reform.
    • Dr Sri Mulyani Indrawati was regarded as a strong advocate of fiscal discipline and reform. PHOTO: ELISA VALENTA, BT

    [JAKARTA] In a surprise move, Indonesian President Prabowo Subianto has replaced Dr Sri Mulyani Indrawati with Dr Purbaya Yudhi Sadewa, the head of the Indonesia Deposit Insurance Corporation, as finance minister in a Cabinet reshuffle on Monday (Sep 8).

    Jakarta’s benchmark index closed down 1.28 per cent following the announcement, while the rupiah weakened 0.75 per cent to 16,309 per US dollar.

    Oktavianus Audi, vice-president at Kiwoom Sekuritas, said the reshuffle underscores the immediate risks stemming from Indonesia’s recent political turmoil and protest-driven demands for changes in tax and fiscal policies.

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