Indonesia's president replaces finance minister with deputy, official says

JAKARTA: Indonesia's President Prabowo Subianto has sacked Finance Minister Purbaya Yudhi Sadewa and appointed his deputy as his replacement, the president's office said on Monday (Sep 14).

Deputy Finance Minister Suahasil Nazara was among the senior officials who arrived at the state palace for a swearing-in ceremony. Suahasil had been deputy finance minister since 2019. 

Earlier on Monday, Purbaya had left in the middle of a parliamentary hearing.

Purbaya was appointed just over a year ago on Sep 8, 2025, replacing longtime finance minister Sri Mulyani Indrawati, who served under three presidents.

Previously a low-profile technocrat best known for leading a deposit insurance agency, Purbaya quickly became one of the more recognisable faces in government with what observers said was his brash and unfiltered style.

In April, Purbaya had floated the idea of imposing a levy on ships passing through the Malacca Strait, as part of a push to maximise the country’s strategic position along global trade and energy routes.

A day later, Indonesia’s foreign minister Sugiono said the country would not do so as this would not be consistent with international law.

In recent months, Purbaya has had to deny speculation that he was resigning from office amid news of lacklustre markets.

He told Bloomberg Technoz the rumour was not true in June, and State Secretary Prasetyo Hadi also said on the same day Purbaya was not departing.

"If anything, now is the time for tighter coordination” between the Finance Ministry, Bank Indonesia, Financial Services Authority and Coordinating Ministry for Economic Affairs, Prasetyo said.

Speaking to reporters after his appointment, Suahasil said he was informed of the decision by the palace on Monday morning.

"I was instructed by the President to look after the country’s finance, its health and its credibility. The state budget must be able to support the government’s priority programmes," he said.

"The Finance Ministry will work hard to ensure that the state budget is healthy and can stimulate the economy."

Prabowo has made several cabinet changes since taking office almost two years ago. Among the most recent was the appointment in July of Sudaryono as head of the National Nutrition Agency, which oversees the president's flagship free meals programme.