JAKARTA: Indonesian President Prabowo Subianto on Monday removed Finance Minister Sri Mulyani Indrawati in a major cabinet reshuffle, following a wave of deadly anti-government protests that have rocked the country.
Sri Mulyani, a highly influential figure who previously served as managing director of the World Bank and as finance minister under three different presidents, saw her house ransacked during the recent unrest sparked by public anger over lavish perks for lawmakers.
She will be replaced by Purbaya Yudhi Sadewa, an economist and former chief commissioner of the Indonesia Deposit Insurance Corporation, according to a presidential decree. Alongside her removal, Prabowo also honorably discharged Chief Security Minister Budi Gunawan and Sports Minister Dito Ariotedjo. No official reason was provided for the changes.
Analysts, however, suggested that her removal had been long anticipated. Bhima Yudhistira Adhinegara, executive director of the Center of Economic and Law Studies, said many civil society groups and think tanks had criticized her inability to implement a fair taxation system. “The demand to remove Sri Mulyani has long been voiced,” he said, noting that while markets might react with short-term volatility, the risks were likely temporary.
Bhima urged the new finance minister to focus on boosting the purchasing power of middle- and lower-income groups to restore public trust. He also cautioned that Purbaya would need to rein in some of Prabowo’s ambitious programs — such as free meals for schoolchildren and large-scale agricultural projects — which have drawn criticism from environmental groups.
The protests in late August were the most violent since Prabowo took office, marking a major challenge for the ex-general less than a year into his presidency. Demonstrators rallied against low wages, unemployment, and parliamentary perks, fueling widespread anger across the country.
Following the announcement of Sri Mulyani’s dismissal, Jakarta’s stock market closed down 1.28 percent, reflecting investor concern over political and economic uncertainty.
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