"Indonesian President Prabowo Subianto abruptly replaced Sri Mulyani Indrawati as finance minister, risking renewed financial turmoil for Southeast Asia's biggest economy following violent protests in recent weeks against his administration. Purbaya Yudhi Sadewa, who has served as chairman of the Deposit Insurance Corporation since 2020, was sworn in as finance minister at a hastily-arranged ceremony late Monday. He said he is "a market person" who will keep Indonesia fiscally healthy."
"Prabowo had clashed with Indrawati previously over their approaches to the budget-she focusing on restraint, he on loosening the purse strings. She'd also become a target of recent protests over the cost of living and fresh perks for lawmakers, unrest that Prabowo is keen to defuse. Still, Indrawati has enjoyed widespread respect among international investors, not least for keeping the deficit below the legal limit of 3% of gross domestic product."
President Prabowo Subianto abruptly replaced Sri Mulyani Indrawati as finance minister and installed Purbaya Yudhi Sadewa, who pledged to keep Indonesia fiscally healthy. The change occurred without a public explanation or formal handover. Markets reacted with the benchmark index closing 1.3% lower and the offshore rupiah weakening to its weakest since May. Prabowo and Indrawati had clashed over budget approaches, with Indrawati favoring restraint and maintaining the deficit below 3% of GDP. Her exit may free room for higher-cost populist programs and raises the risk of capital flight amid recent unrest.
Read at Fortune Asia
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