Indonesia's president fires finance minister after just one year
President Prabowo has removed Finance Minister Purbaya Yudhi Sadewa. He wants to restore investor confidence in Indonesia's economy.
President Prabowo Subianto has sacked Finance Minister Purbaya Yudhi Sadewa. Prabowo replaced him with Suahasil Nazara, a former academic who was deputy finance minister since 2019.
Purbaya lasted just one year in the role. Purbaya was the second finance minister fired by Prabowo.
The move comes as Southeast Asia's largest economy faces a crisis of investor confidence. Indonesia increased fuel subsidies and pushed costly programs like free school meals under Purbaya.
The rupiah currency fell and the fiscal deficit grew. Fitch and Moody's both cut Indonesia's credit rating.
Suahasil promised to fix fiscal credibility and keep the deficit below three per cent of GDP.
- One year
- Tenure length
- Below 3 percent of GDP
- Deficit target
- Fitch and Moody's
- Credit rating downgrades
Why it mattersWhen major emerging economies lose investor confidence, it affects regional and global market stability and economic growth.
AustraliaAustralia trades heavily with Indonesia; economic changes there can affect regional investment and Australian business opportunities.
✓ Claims checked against the source. checked 22 d ago
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