2 hrs ago
Indonesia Finance Minister Ousted After Clash With Prabowo Ally
Indonesia’s president removed his finance minister, Purbaya Yudhi Sadewa.
The dismissal followed a disagreement about moving hundreds of government workers to new jobs.
A senior customs official, Djaka Budhi Utama, reportedly disagreed with the changes and spoke directly to the president.
Djaka denies that a conflict led to the dismissal.
Purbaya said the internal reshuffle played a part but did not give more details.
Suahasil Nazara became the new finance minister.
He said he would review the job changes before deciding whether they should continue.
Analysts see the event as a sign that personal loyalty may be important in the president’s government.
Other analysts and investors hope the change will make Indonesia’s economic policies clearer.
President Prabowo Subianto dismissed Finance Minister Purbaya Yudhi Sadewa after a dispute over reshuffling hundreds of ministry officials.
Sources said Customs and Excise Chief Djaka Budhi Utama objected to the personnel changes and raised concerns directly with Prabowo.
Purbaya was informed of his dismissal on Monday while answering lawmakers’ questions about the 2027 budget plan.
New Finance Minister Suahasil Nazara said he would review the appointments and had advised delaying the reshuffle ceremony.
Analysts said the episode could reflect Prabowo’s preference for loyal allies, while investors welcomed the leadership change as potentially restoring confidence.
- Who
- Indonesian President Prabowo Subianto, dismissed Finance Minister Purbaya Yudhi Sadewa, Customs and Excise Chief Djaka Budhi Utama, and newly appointed Finance Minister Suahasil Nazara.
- What
- Purbaya was removed after a reported dispute over the reshuffling of hundreds of Finance Ministry officials.
- Where
- Indonesia, centered on the Finance Ministry in Jakarta.
- When
- The dismissal was announced on Monday, with details reported on September 16; the dispute peaked around the previous Thursday and Friday.
- Why
- Sources said Djaka and tax chief Bimo Wijayanto objected to the personnel changes, while analysts linked the episode to Prabowo’s reliance on trusted allies and loyalists.
Loyalty and Executive Control
Technocratic Merit and Institutional Process
Reason for the dismissal
Loyalty and Executive Control
Sources said Prabowo acted after Djaka raised objections to Purbaya’s reshuffle directly with the president, reflecting the importance of trusted relationships in decision-making.
Technocratic Merit and Institutional Process
Analysts warned that relying on loyal allies and former military figures could weaken merit-based and technocratic decision-making.
The official reshuffle
Loyalty and Executive Control
Purbaya said the changes were based on professional assessments and consultation, and a source said he believed they would improve tax and customs revenue collection.
Technocratic Merit and Institutional Process
Djaka and Bimo Wijayanto objected because they had not agreed to the changes, while Suahasil advised postponing the ceremony until their concerns were addressed.
Economic impact
Loyalty and Executive Control
Analysts and investors welcomed Purbaya’s replacement as a step that could restore confidence after months of uncertain policymaking.
Technocratic Merit and Institutional Process
Analysts said the dispute and abrupt dismissal illustrate how bureaucratic infighting and political loyalty can override professional expertise.
Key facts
- Dismissed minister
- Purbaya Yudhi Sadewa
- New finance minister
- Suahasil Nazara, previously a deputy finance minister
- Reported trigger
- A dispute over the reshuffling of hundreds of Finance Ministry officials
- Key official involved
- Djaka Budhi Utama, the customs and excise chief and a former member of Prabowo’s special forces team
- Dismissal timing
- Purbaya was informed on Monday while answering lawmakers’ questions about the 2027 budget plan
- Personnel review
- Suahasil Nazara said he would review all the appointments
- Economic context
- Indonesia was described as a $1.5 trillion G20 economy experiencing months of uncertain policymaking
Quotes
Wijayanto Samirin
Economist at Paramadina University
“For a country to succeed, its political system must be sound and technocratic, and its bureaucracy must be based on meritocracy.”
theprint.in
NDTV
Sources
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