No Result
View All Result
SUBMIT YOUR ARTICLES
  • Login
Wednesday, October 22, 2025
TheAdviserMagazine.com
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
No Result
View All Result
TheAdviserMagazine.com
No Result
View All Result
Home Market Research Business

Prabowo removes finance chief, risking turmoil for Indonesia

by TheAdviserMagazine
1 month ago
in Business
Reading Time: 3 mins read
A A
Prabowo removes finance chief, risking turmoil for Indonesia
Share on FacebookShare on TwitterShare on LInkedIn



Indonesian President Prabowo Subianto abruptly replaced Sri Mulyani Indrawati as finance minister, risking renewed financial turmoil for Southeast Asia’s biggest economy following violent protests in recent weeks against his administration.

Purbaya Yudhi Sadewa, who has served as chairman of the Deposit Insurance Corporation since 2020, was sworn in as finance minister at a hastily-arranged ceremony late Monday. He said he is “a market person” who will keep Indonesia fiscally healthy. 

Prabowo gave no explanation for his move, and an expected official handover event between Indrawati and Purbaya on Monday evening at the finance ministry did not eventuate. 

Rumors earlier in the day that Prabowo could replace Indrawati saw the benchmark stock index pare early gains to close 1.3% lower ahead of the announcement. The offshore rupiah slid after the news, with one-month non-deliverable forwards declining 1.1% to 16,583 per dollar, the weakest since May.

Prabowo had clashed with Indrawati previously over their approaches to the budget—she focusing on restraint, he on loosening the purse strings. She’d also become a target of recent protests over the cost of living and fresh perks for lawmakers, unrest that Prabowo is keen to defuse.

Still, Indrawati has enjoyed widespread respect among international investors, not least for keeping the deficit below the legal limit of 3% of gross domestic product. Her departure means Prabowo, who is pushing high-cost, populist programs like free meals for schools, may have more room to spend. She has not commented publicly so far on her removal.

“There’s definitely a risk of capital flight now as international investors will be spooked in terms of what the fiscal outlook now looks like,” said Michael Brown, senior research strategist at Pepperstone Research in London. 

Indrawati’s exit comes after a series of finance-related appointments extending the president’s influence, including new heads for the tax and customs offices. His nephew, Thomas Djiwandono, is a deputy finance minister. 

Indrawati, 63, led the finance ministry for nearly 14 of the last 20 years, providing a level of fiscal credibility for three presidents and helping the nation secure investment-grade credit ratings. The former World Bank executive was first appointed by former President Susilo Bambang Yudhoyono in 2005, then by President Joko Widodo in 2016.

Tensions between Indrawati and Prabowo predated the current administration: When Prabowo was defense minister he pushed for increased defense spending while Indrawati prioritized fiscal discipline. And while he retained her as finance minister last October after his election win, there were soon signs of disquiet.

An apparent last-minute intervention by Prabowo saw the government scale back its planned increase in the value-added tax rate just hours before it was set to take effect on January 1. Rumors in March that Indrawati might depart sent markets tumbling, forcing the government to issue a denial. 

Things seemed to briefly improve, with the draft 2026 budget unveiled last month projecting both a lower deficit and higher growth.

But then speculation about Indrawati’s future resurfaced after her home was among those looted during the protests of late August. Hundreds of demonstrations took place across 35 provinces, leaving at least 10 dead and several government buildings and public facilities burned.

Protesters were galvanized by revelations of generous allowances for lawmakers at a time the cost of living is rising, with the demonstrations escalating after a delivery driver was hit and killed by an armored police vehicle. The changes to lawmaker allowances were rolled back as part of efforts to defuse the rallies.

“The finance minister was seen as the primary defender of Indonesia’s excellent debt profile,” said Charlie Robertson, head of macro strategy at FIM Partners in Dubai, suggesting that foreign investors may retain faith, but that local sentiment remains fragile. “The risk is that locals fret about higher debt, choose U.S. Treasuries over Indonesian bonds, and this puts pressure on the IDR.”

The new finance minister has served as a deputy at the Coordinating Ministry for Maritime Affairs and Investment. Purbaya was an economist in the early 2000s who worked at the Danareksa Research Institute and became president director of PT Danareksa Sekuritas.

In a briefing late Monday, Purbaya said he has extensive experience in markets, and in providing fiscal advice to the government. He added he will talk with Indrawati.

“Mulyani’s departure, though not unexpected after recent unrest, marks the end of an era of fiscal credibility,” said Mohit Mirpuri, a senior partner at SGMC Capital Pte.

But she has left “strong foundations,” he said, with Indonesia able to tap “experienced technocrats” like Purbaya. “Overall, the transition should be manageable, with policy continuity the key to restoring confidence.”



Source link

Tags: chieffinanceIndonesiaPraboworemovesRiskingturmoil
ShareTweetShare
Previous Post

US Dollar Under Pressure After Weak Jobs Data — Eyes Turn to This Week’s CPI

Next Post

Herbein Financial Group: September 2025 Market Update

Related Posts

edit post
Navan to aim for -8b valuation in Nasdaq IPO next week

Navan to aim for $7-8b valuation in Nasdaq IPO next week

by TheAdviserMagazine
October 22, 2025
0

Travel booking company Navan, formerly TripActions, will reportedly hold its IPO on Nasdaq next week at a company valuation...

edit post
Where Will It Be in 1 Year (Oct 22)

Where Will It Be in 1 Year (Oct 22)

by TheAdviserMagazine
October 22, 2025
0

2024 Getty Images / Getty Images Entertainment via Getty Images Shares of Rivian Automotive Inc. (NASDAQ: RIVN) are changing hands...

edit post
Willing to pay extra to build resilience in our supply chains: Piyush Goyal

Willing to pay extra to build resilience in our supply chains: Piyush Goyal

by TheAdviserMagazine
October 22, 2025
0

New Delhi: Commerce and Industry Minister Piyush Goyal on Wednesday said the government is addressing supply chain issues across all...

edit post
The U.S. government shutdown means investors are flying blind when it comes to high-quality data—and they like it that way

The U.S. government shutdown means investors are flying blind when it comes to high-quality data—and they like it that way

by TheAdviserMagazine
October 22, 2025
0

The U.S. government shutdown has halted federal economic data collection, leaving investors without official employment or inflation figures. Despite flying...

edit post
Germany to buy Rafael Spike missiles for €2b

Germany to buy Rafael Spike missiles for €2b

by TheAdviserMagazine
October 22, 2025
0

The German Army has decided to procure Spike missiles from Israel’s Rafael Advanced Defense Systems for €2 billion. The...

edit post
Genflow Biosciences announces second European patent application (GENFF:OTCMKTS)

Genflow Biosciences announces second European patent application (GENFF:OTCMKTS)

by TheAdviserMagazine
October 22, 2025
0

Genflow Biosciences (OTCQB:GENFF) on Wednesday announced that its second European patent application (Application No. 23821586.7, Publication No. EP4630038), titled "SIRT6...

Next Post
edit post
Herbein Financial Group: September 2025 Market Update

Herbein Financial Group: September 2025 Market Update

edit post
JUNIUS J. GONZALES | Diverse: Issues In Higher Education

JUNIUS J. GONZALES | Diverse: Issues In Higher Education

  • Trending
  • Comments
  • Latest
edit post
77-year-old popular furniture retailer closes store locations

77-year-old popular furniture retailer closes store locations

October 18, 2025
edit post
Pennsylvania House of Representatives Rejects Update to Child Custody Laws

Pennsylvania House of Representatives Rejects Update to Child Custody Laws

October 7, 2025
edit post
What to Do When a Loved One Dies in North Carolina

What to Do When a Loved One Dies in North Carolina

October 8, 2025
edit post
Probate vs. Non-Probate Assets: What’s the Difference?

Probate vs. Non-Probate Assets: What’s the Difference?

October 17, 2025
edit post
California Attorney Pleads Guilty For Role In 2M Ponzi Scheme

California Attorney Pleads Guilty For Role In $912M Ponzi Scheme

October 15, 2025
edit post
Baby Boomers Are Flocking to This Florida Town — but Not for the Weather

Baby Boomers Are Flocking to This Florida Town — but Not for the Weather

October 9, 2025
edit post
Navan to aim for -8b valuation in Nasdaq IPO next week

Navan to aim for $7-8b valuation in Nasdaq IPO next week

0
edit post
India, U.S. near trade deal with major tariff cuts, reduced Russian oil purchases

India, U.S. near trade deal with major tariff cuts, reduced Russian oil purchases

0
edit post
Robinhood lists BNB token

Robinhood lists BNB token

0
edit post
A wish list for Carney’s fall budget

A wish list for Carney’s fall budget

0
edit post
Usa Rare Earth (USAR): Dreht die Seltene-Erden-Aktie am kritischen 25-USD-Support?

Usa Rare Earth (USAR): Dreht die Seltene-Erden-Aktie am kritischen 25-USD-Support?

0
edit post
Workers Shed Light on the Biggest Shifts in the Workplace Now

Workers Shed Light on the Biggest Shifts in the Workplace Now

0
edit post
Navan to aim for -8b valuation in Nasdaq IPO next week

Navan to aim for $7-8b valuation in Nasdaq IPO next week

October 22, 2025
edit post
Robinhood lists BNB token

Robinhood lists BNB token

October 22, 2025
edit post
Usa Rare Earth (USAR): Dreht die Seltene-Erden-Aktie am kritischen 25-USD-Support?

Usa Rare Earth (USAR): Dreht die Seltene-Erden-Aktie am kritischen 25-USD-Support?

October 22, 2025
edit post
Beyond Meat shares surge as meme traders buy stock

Beyond Meat shares surge as meme traders buy stock

October 22, 2025
edit post
Where Will It Be in 1 Year (Oct 22)

Where Will It Be in 1 Year (Oct 22)

October 22, 2025
edit post
Willing to pay extra to build resilience in our supply chains: Piyush Goyal

Willing to pay extra to build resilience in our supply chains: Piyush Goyal

October 22, 2025
The Adviser Magazine

The first and only national digital and print magazine that connects individuals, families, and businesses to Fee-Only financial advisers, accountants, attorneys and college guidance counselors.

CATEGORIES

  • 401k Plans
  • Business
  • College
  • Cryptocurrency
  • Economy
  • Estate Plans
  • Financial Planning
  • Investing
  • IRS & Taxes
  • Legal
  • Market Analysis
  • Markets
  • Medicare
  • Money
  • Personal Finance
  • Social Security
  • Startups
  • Stock Market
  • Trading

LATEST UPDATES

  • Navan to aim for $7-8b valuation in Nasdaq IPO next week
  • Robinhood lists BNB token
  • Usa Rare Earth (USAR): Dreht die Seltene-Erden-Aktie am kritischen 25-USD-Support?
  • Our Great Privacy Policy
  • Terms of Use, Legal Notices & Disclosures
  • Contact us
  • About Us

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.