Sunday, 5th April 2026
Khabor Wala Desk
Published: 8th September 2025, 1:56 PM
Indonesian President Prabowo Subianto on Monday removed Finance Minister Sri Mulyani Indrawati in a cabinet reshuffle, following deadly anti-government protests across the country.
Sri Mulyani is a prominent figure in global finance, having previously served as Managing Director of the World Bank and as finance minister under three different Indonesian presidents.
During the recent protests, which erupted over lavish perks for lawmakers, her house was ransacked, highlighting the intensity of public anger.
According to a presidential decree, Purbaya Yudhi Sadewa, an economist and former Chief Commissioner of the Indonesia Deposit Insurance Corporation, has been appointed as the new finance minister.
Alongside this reshuffle, President Prabowo also honourably discharged:
No official reason was provided for Sri Mulyani’s removal.
Bhima Yudhistira Adhinegara, executive director of the Center for Economic and Law Studies, commented on the removal:
“The demand to remove Sri Mulyani has long been voiced by various think tanks and civil societies as a criticism of her inability to push for a fair taxation system. Considering the recent economic situation, her removal is not surprising.
”He added: “The market’s reaction to short-term risks will be volatile, but it is only temporary.”
Bhima outlined key areas of focus for Purbaya Yudhi Sadewa:
| Challenge | Details |
| Tax revenue strategies | Must consider the purchasing power of middle and lower classes to restore public trust quickly. |
| National programmes | Required to regulate ambitious initiatives such as free school meals and large-scale agricultural zones to boost food security, which have faced environmental criticism. |
The demonstrations in late August were the largest and most violent of Prabowo’s presidency, occurring less than a year into his term.
Key protest issues included:
Protesters clashed with police, creating widespread unrest and prompting a cabinet reshuffle.
Following the announcement of Sri Mulyani’s removal, Jakarta stocks closed down 1.28%, reflecting concerns over economic stability.
The cabinet reshuffle marks a critical moment for President Prabowo, as his administration faces both public anger and economic pressures less than a year into his term.
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