Indonesia Replaces Finance Minister Sri Mulyani with Economist Purbaya Amid Unrest

Indonesian President Prabowo Subianto appointed Purbaya Yudhi Sadewa as the new finance minister in September 2025, replacing the well-regarded Sri Mulyani Indrawati amid widespread protests and concerns about the country's economic direction. Purbaya, an economist with a background in engineering and advanced degrees from Purdue University, has held various government and economic roles, including chairing the Indonesia Deposit Insurance Corporation since 2020. He has pledged to accelerate economic growth to meet Prabowo's ambitious 8% target without raising new taxes, while balancing fiscal discipline despite pressure to fund costly government programs. His appointment reflects a shift toward a more growth-focused economic policy under Prabowo’s administration, which has faced unrest over government spending and taxation. Purbaya’s leadership style is described as plain-speaking and pragmatic, emphasizing equitable development and private sector involvement. The change also signals a political recalibration as Prabowo seeks to solidify control and respond to public demands following recent violent protests.