Indonesia Replaces Finance Minister, New Chief Seeks Rapid Economic Growth

Indonesia's President Prabowo Subianto replaced long-serving finance minister Sri Mulyani Indrawati with economist Purbaya Yudhi Sadewa in a surprise cabinet reshuffle, aiming to accelerate economic growth amid fears of a slowdown. Purbaya, who was shocked by his sudden appointment, pledged to pursue policies targeting rapid expansion, stating that achieving 8% economic growth is "not impossible" with the right measures and commitment. However, the transition unsettled markets, causing the rupiah to fall and stock and bond prices to decline, reflecting investor concerns about potential erosion of fiscal credibility under more populist spending. Purbaya emphasized the need for greater involvement from both the private sector and government to boost the economy, while facing the challenge of balancing ambitious growth targets with inflation and public debt control. Sri Mulyani, known for cautious economic stewardship, acknowledged imperfections in her tenure but bid farewell amid the reshuffle. The change comes less than a year into Prabowo’s presidency, which has seen growth remain around 5% despite promises of higher rates and costly social programs.