Jakarta: Indonesia’s former finance minister Purbaya Yudhi Sadewa said on Tuesday that he was upset by his sudden removal from office but had partly expected the decision, after President Prabowo Subianto replaced him with his deputy, Suahasil Nazara.
Purbaya was dismissed on Monday, September 14, after about a year as finance minister. He said he learned about the decision through a telephone call from presidential spokesperson Prasetyo Hadi while he was attending a parliamentary meeting. He then left the meeting, shortly before Suahasil was sworn in at the State Palace in Jakarta.
Purbaya said he had no policy disagreement with President Prabowo. He said he expected the possibility of being removed after a recent decision, but did not publicly identify a specific reason for his dismissal.
The Indonesian government has not publicly given a specific reason for removing Purbaya.
Suahasil, 55, was formally appointed finance minister on Monday under Presidential Decree No. 97/P of 2026. He becomes the third person to hold the finance portfolio since Prabowo became president in October 2024.
Suahasil has served as deputy finance minister since 2019 and has extensive experience in the Finance Ministry and economic policy. He previously headed the ministry’s Fiscal Policy Agency.
After taking office, Suahasil said his priority would be to protect the health and credibility of the state budget. He pledged to keep the fiscal deficit below the legal limit of 3 percent of gross domestic product and said the budget should continue to support the government’s priority programmes.
The change comes at a sensitive time for Indonesia’s economy. The country has faced concerns over fiscal policy, investor confidence, pressure on the rupiah and the management of government spending.
Indonesia’s fiscal deficit reached about 2.92 percent of GDP in 2025, its widest in more than two decades outside the pandemic period. The figure remained below the country’s legal ceiling of 3 percent.
Credit rating agencies Fitch Ratings and Moody’s have also revised Indonesia’s sovereign outlook to negative this year. The changes have added to concerns among investors about fiscal pressures and policy uncertainty, although neither agency downgraded Indonesia’s sovereign credit rating as part of those outlook changes.
The rupiah has also faced significant pressure, while capital outflows have increased. Investor concerns have included fiscal policy, economic policy coordination and wider global uncertainty.
Purbaya’s tenure was marked by efforts to support economic growth. Economic growth accelerated during his time as finance minister, although it remained below Prabowo’s longer term target of 8 percent.
At the same time, some policies during Purbaya’s tenure became controversial and raised concerns about coordination between economic institutions.
One issue involved the transfer of government funds to state owned banks to increase liquidity and encourage lending. The measure was part of efforts to support economic activity and became a source of tension between the Finance Ministry and the central bank.
Another controversy involved Danantara Indonesia, the country’s sovereign wealth fund. Purbaya said Danantara would transfer 120 trillion rupiah, or about 6.8 billion dollars, to the government to help meet the fiscal deficit target. The head of Danantara later said that no such plan had been discussed.
Neither issue has been officially identified as the reason for Purbaya’s dismissal.
The change also comes as the government works to finalise its 2027 state budget. Suahasil will have to balance the government’s spending priorities with the need to maintain fiscal discipline and investor confidence.
Business leaders have called for policy continuity following the change. They have stressed the importance of investor confidence, purchasing power, investment and economic productivity.
Suahasil has also stressed continuity, saying the Finance Ministry will continue supporting economic growth while maintaining a healthy and credible budget.
Purbaya formally handed over his responsibilities to Suahasil on Tuesday. Reflecting on his year in office, he described his tenure as decent and said he planned to spend his retirement quietly.
Suahasil now takes charge of Indonesia’s finances at a critical moment, with investors watching to see whether the change brings greater policy stability and fiscal confidence.