Overview

• Five ministers were removed and economist Purbaya Yudhi Sadewa was sworn in as finance minister, with a new Ministry of Hajj and Umrah created by presidential decree.
• The overhaul followed two weeks of unrest over lawmakers’ perks and living costs, including the looting of Sri Mulyani’s home and the death of 21-year-old Affan Kurniawan, with Komnas HAM reporting 10 fatalities and police citing seven.
• Indonesia’s stocks fell and the rupiah dropped more than 1% on Sept 9, prompting confirmed currency-market intervention by the central bank as international bonds also weakened.
• Purbaya, a former deposit insurance chief, signaled a pro-growth stance, saying 8% economic expansion is “not impossible” and pledging to accelerate activity while keeping spending efficient.
• Analysts warned that fiscal credibility could be tested, citing risks of pressure to relax the 3% of GDP deficit ceiling or on the central bank, and said investors are waiting for clear policy guidance.