Overview

• Purbaya Yudhi Sadewa was sworn in to replace Sri Mulyani Indrawati, telling a handover ceremony the task “isn’t easy” and calling 8% growth “not impossible” while targeting 6%–7% in the near term.
• Five ministers were replaced and a new Ministry of Hajj and Umrah was formalised by presidential decree as part of the shake-up.
• The rupiah fell more than 1% on Tuesday, prompting Bank Indonesia to intervene in the foreign-exchange market, while stocks extended losses to more than 1.5% and international bonds weakened.
• Analysts warned that removing the widely respected Sri Mulyani could erode fiscal credibility, raise deficit risks, and increase pressure on the central bank to support government programs.
• The overhaul followed nationwide unrest over lawmakers’ housing allowances and broader economic grievances; calm has largely returned after perks were revoked, with disputed protest death tolls of seven reported by police and 10 by the human rights commission.