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Indonesia Replaces Finance Minister Amid Investor Confidence Concerns
Indonesia has changed its finance minister again.
President Prabowo Subianto removed Purbaya Yudhi Sadewa and appointed his deputy, Suahasil Nazara.
Suahasil said he would manage the government’s budget carefully.
He also promised to keep the budget deficit below 3% of the economy.
Investors had become worried about Indonesia’s economic policies and spending plans.
Purbaya’s time in office included a falling currency and a growing deficit.
His plan to quickly add money to banks also caused disagreements with the central bank.
Credit-rating agencies Fitch and Moody’s changed Indonesia’s outlook to negative.
An analyst said Suahasil may bring steadier and more predictable policymaking.
President Prabowo Subianto dismissed Finance Minister Purbaya Yudhi Sadewa and appointed Deputy Finance Minister Suahasil Nazara.
Suahasil Nazara pledged to maintain a credible state budget and keep the fiscal deficit below 3% of GDP.
Purbaya’s tenure faced scrutiny over a falling rupiah, a widening deficit, and unconventional liquidity policies.
Fitch and Moody’s downgraded Indonesia’s credit outlook from stable to negative, citing policy uncertainty and planned fiscal spending.
Analysts said Suahasil’s technocratic background and experience under Sri Mulyani Indrawati could bring more predictable policymaking.
- Who
- President Prabowo Subianto dismissed Finance Minister Purbaya Yudhi Sadewa and appointed Deputy Finance Minister Suahasil Nazara.
- What
- Indonesia changed its finance minister for the third time under Prabowo’s presidency.
- Where
- At Indonesia’s state palace in Jakarta, where the swearing-in ceremony took place.
- When
- The change was announced on Monday, September 14; the articles do not specify the year.
- Why
- The government is seeking to restore investor confidence amid concerns about policymaking, fiscal spending, and the budget deficit.
Growth-Oriented Policy
Fiscal Prudence
Government economic strategy
Growth-Oriented Policy
Purbaya favored aggressive pro-growth policies, including quickly injecting liquidity into banks.
Fiscal Prudence
Suahasil emphasized a credible and trustworthy budget, fiscal discipline, and keeping the deficit below 3% of GDP.
Investor confidence
Growth-Oriented Policy
Supporters of faster growth could argue that expanded spending and liquidity may help economic activity; the article reports that growth figures rose under Purbaya.
Fiscal Prudence
Critics pointed to the falling rupiah, widening deficit, questions about economic data, and credit-outlook downgrades as evidence of policy risks.
Key facts
- New finance minister
- Suahasil Nazara, previously deputy finance minister since 2019
- Dismissed finance minister
- Purbaya Yudhi Sadewa
- Fiscal target
- Keep the fiscal deficit below 3% of GDP
- Credit outlook
- Fitch and Moody’s changed Indonesia’s outlook from stable to negative
- Main policy concerns
- Fiscal spending, policy uncertainty, the falling rupiah, and a widening deficit
- Controversial proposal
- Purbaya announced a planned 120 trillion rupiah ($6.8 billion) transfer from Danantara Indonesia, but Danantara’s head said no such plan had been discussed
- Analyst assessment
- Suahasil could bring more stable and predictable policymaking
Quotes
Suahasil Nazara
Indonesia’s newly appointed finance minister and former deputy finance minister.
“I will continue to run a trustworthy state budget, ensure trustworthy public communication, and also ensure that what the state budget does supports the government’s priority programmes.”
theprint.in
“The priority is to run a credible state budget”
theprint.in
Angus Mackintosh
ASEAN specialist at Aletheia Capital.
“This looks like another move toward fostering greater stability given that Nazara served under Sri Mulyani and has more of a technocratic background”
theprint.in
Sources
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