Indonesia’s President Reshuffles Cabinet, Replaces Finance Minister Sri Mulyani

TDT | Jakarta

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Indonesian President Prabowo Subianto has removed Finance Minister Sri Mulyani Indrawati in a cabinet reshuffle following deadly anti-government protests across the country.

Sri Mulyani, a highly influential figure who previously served as managing director of the World Bank and as finance minister under three presidents, faced public backlash during recent protests over lawmakers’ lavish perks. Her home was even ransacked during the demonstrations.

She will be replaced by economist Purbaya Yudhi Sadewa, former chief commissioner of the Indonesia Deposit Insurance Corporation, according to a presidential decree.

President Prabowo did not provide a reason for Sri Mulyani’s removal. In the same reshuffle, Chief Security Minister Budi Gunawan and Sports Minister Dito Ariotedjo were also honorably discharged.

Bhima Yudhistira Adhinegara, executive director of the Center of Economic and Law Studies, said the move was not entirely unexpected given Indonesia’s recent economic challenges.

“The demand to remove Sri Mulyani had long been raised by think tanks and civil society groups criticizing her for not implementing a fair taxation system,” Bhima told AFP.

He added that the market might react with short-term volatility, but such effects are expected to be temporary. Bhima emphasized that the new finance minister must consider the purchasing power of middle and lower-income Indonesians in order to restore public trust quickly.