Long-serving Indonesian Finance Minister Sri Mulyani removed in Cabinet reshuffle

JAKARTA – Indonesian President Prabowo Subianto has appointed economist Purbaya Yudhi Sadewa as the country’s new finance minister, replacing Dr Sri Mulyani Indrawati in an abrupt Cabinet reshuffle that comes in the wake of

violent protests and looting of lawmakers’ homes

.

The reshuffle also affects four other ministerial posts and creates a new Ministry of Hajj and Umrah.

“Based on various developments, inputs and continuous evaluations carried out by the President this afternoon, he has decided to make changes to the composition of the Red and White Cabinet in several ministerial positions,” State Secretary Prasetyo Hadi told reporters on Sept 8.

“May this decision bring goodness for the nation, the state and the people,” he added.

Dr Purbaya is a veteran technocrat and chairman of the Indonesia Deposit Insurance Corporation. He holds a degree in electrical engineering from the Bandung Institute of Technology, and a master’s and doctorate in economics from Purdue University in Indiana in the US.

Responding to reporters’ questions on the removal of Dr Sri Mulyani, Mr Prasetyo said that as head of government, President Prabowo has the prerogative to make Cabinet changes and, after evaluation, he decided to reshuffle the line-up.

Dr Purbaya, 61, has held senior government roles, including deputy for maritime sovereignty coordination at the Coordinating Ministry for Maritime and Investment Affairs, and economic special staff to the Coordinating Minister for Maritime Affairs and for Political, Legal and Security Affairs.

He said his immediate focus is to accelerate economic growth, and ensure that government spending is efficiently deployed.

“The President’s message is to... create economic growth as fast as possible. That is what we will work on going forward,” he told reporters after his appointment.

Dr Purbaya said he will seek advice from Dr Sri Mulyani to fix weaknesses in how the government manages money and to make the system work better.

“We will optimise the existing system. The systems that are working, we will accelerate. The ones that are slow or stagnant, we will fix. It is not a new machine, it is the old machine made better,” he said.

Meanwhile, Mr Budi Gunawan, who formerly led the Coordinating Ministry for Political, Legal and Security Affairs, has been removed, though no successor has been named yet.

Mr Abdul Kadir Karding, Minister for the Protection of Indonesian Migrant Workers, has been replaced by Mr Mukhtarudin, while Mr Ferry Joko Juliantono takes over as Minister of Cooperatives from Mr Budi Arie Setiadi. Minister of Youth and Sports Dito Ariotedjo has also been removed, with his successor yet to be announced.

A new Ministry of Hajj and Umrah has been established, with Mr Mochamad Irfan Yusuf appointed minister and Mr Dahnil Anzar Simanjuntak his deputy. The ministry was established in line with parliamentary discussions on the draft law on the haj, the pilgrimage by Muslims to the city of Mecca in Saudi Arabia.

The inauguration of the new ministers took place on Sept 8 at the State Palace.

Dr Sri Mulyani, 63, one of Indonesia’s most prominent technocrats who served as finance minister for more than a decade under three presidents, became one of the targets of public anger, and her residence in the upscale Bintaro district in Banten province outside Jakarta was stormed and looted by mobs on Aug 31. Protesters smashed property and carted away valuables ranging from paintings to furniture.

Anger had been building against Dr Sri Mulyani following the circulation of a viral deepfake video that shows her calling teachers a “burden”, along with her own controversial remarks equating taxes with Islamic alms, or zakat.

Following the looting of her residence, Dr Sri Mulyani reportedly requested to step down, according to local media. Rumours of her resignation had been circulating since early 2024, amid alleged disputes with Mr Prabowo, who was then Defence Minister, and concerns over her role in the Cabinet.

On March 14, 2025, House Deputy Speaker Sufmi Dasco told The Jakarta Post that he had confirmed with Mr Prabowo, who had by then become president, that Dr Sri Mulyani had no plans to resign and that reports of a Cabinet reshuffle were unfounded.

Dr Sri Mulyani first served as Indonesia’s finance minister from 2005 to 2010 under former president Susilo Bambang Yudhoyono. She then joined the World Bank as managing director from 2010 to 2016, before returning to Indonesia to assume the same finance minister role under former president Joko Widodo in 2016, a position she held until 2025.

During her long career, she also served as executive director at the International Monetary Fund, cementing her reputation as a leading technocrat in global finance.

Indonesia’s Cabinet shake-up comes as Mr Prabowo faces mounting political and social pressures, following days of clashes, arson and at least 10 deaths nationwide. The protests were initially sparked by a new allowance package for lawmakers, but quickly evolved into a broader movement against the country’s political elites, who were perceived as being out of touch.

Public anger intensified after

21-year-old ride-hailing and delivery rider Affan Kurniawan was run over and killed by a police vehicle

on Aug 28.

Analysts say the reshuffle reflects Mr Prabowo’s attempt to reassert control and restore public trust as his administration grapples with widespread unrest and economic discontent.

“This reshuffle is the President’s response to public demands following recent large-scale protests,” Mr Agung Baskoro, executive director of political research group Trias Politika Strategis, told The Straits Times.

“It deserves appreciation. Now, it is up to the newly appointed ministers to perform at their best. Public expectations are high for meaningful change and improvements in people’s welfare,” he added.