Overview

• President Prabowo Subianto removed Sri Mulyani Indrawati and swore in economist Purbaya Yudhi Sadewa after two weeks of unrest that included the ransacking of Sri Mulyani’s home.
• The reshuffle spanned several portfolios and a presidential decree formalised a new Ministry of Hajj and Umrah alongside other ministerial changes.
• Indonesia’s main stock index fell about 1–1.3% and international bonds declined, while the rupiah saw sharp intraday moves that analysts said may prompt Bank Indonesia to curb volatility.
• Analysts warned the exit of a widely trusted fiscal steward could signal looser budget rules and greater pressure on monetary policy, with investors seeking clarity on funding for flagship programmes.
• Purbaya, a former head of the Indonesia Deposit Insurance Corporation with Purdue economics degrees, said an 8% growth target is “not impossible” and pledged to find ways to accelerate the economy.