Indonesia’s esteemed Finance Minister Sri Mulyani Indrawati was removed from her position on 8 September 2024, marking a significant shift in the country’s economic leadership. This change came as part of a broader Cabinet reshuffle orchestrated by President Prabowo Subianto, who appointed economist Purbaya Yudhi Sadewa as her successor.
Purbaya Yudhi Sadewa: The New Face of Finance
Purbaya, who previously led the Indonesia Deposit Insurance Corporation, brings an extensive resume to his new role. With a master’s and doctoral degree in economics from Purdue University, he has held various important positions, including deputy minister at the Maritime and Investment Ministry and chief executive at the state-owned brokerage Danareksa Securities.
Sri Mulyani’s Legacy
Sri Mulyani’s tenure was characterised by commendable reforms, particularly in taxation, and her adept handling of multiple crises faced by Southeast Asia’s largest economy. She had the unique distinction of having served three presidents and was also a former managing director of the World Bank. Her departure signals the end of an era noted for fiscal stability and credibility.
Market Reactions
- The main stock index experienced a drop of 1.3% post-announcement.
- The rupiah remained relatively stable, having shown a gain against the dollar earlier in the day.
Under the Shadow of Unrest
This Cabinet reshuffle follows two weeks of nationwide protests demanding a fairer taxation system. These protests escalated to the extent that looters targeted Sri Mulyani’s home in South Tangerang, underscoring the tension surrounding her leadership.
“Mulyani’s departure, though anticipated after the recent unrest, marks the end of an era of fiscal credibility,” said Mohit Mirpuri, fund manager at SGMC Capital. “She’s left strong foundations, and with experienced technocrats in the wings, Indonesia can regroup quickly.”