Indonesia relieves Finance Minister Sri Mulyani following public demonstrations
Indonesia's New Finance Minister Amid Political and Economic Unrest
Indonesia has appointed Purbaya Yudhi Sadewa as the new Finance Minister, following the removal of Sri Mulyani Indrawati from her post. The change comes amidst a period of political and economic instability in the country, with violent demonstrations rocking the nation.
Before his new appointment, Purbaya Yudhi Sadewa served as a deputy at the Coordinating Ministry for Maritime Affairs and Investment. He has also held various government positions in the past, including leading the Indonesian Deposit Insurance Corporation starting from 2020. However, he was not mentioned to have been active in the Indonesian Ministry of Finance.
Sri Mulyani, on the other hand, is a symbol of fiscal credibility for three different presidents. She was first appointed as Finance Minister by former president Susilo Bambang Yudhoyono in 2005. She was later appointed by president Joko Widodo in 2016 and was retained in her post by Prabowo Subianto's administration last October. Sri Mulyani is widely credited with helping Indonesia secure investment-grade credit ratings.
However, recent violent demonstrations have led to her removal from her post. During these demonstrations, Sri Mulyani's home was looted by a mob, and several government buildings and public facilities have been burned. At least 10 people have been killed during these demonstrations.
The economic impact of these events is also being felt. Indonesia's benchmark stock index has fallen 0.9 per cent, and the rupiah one-month non-deliverable forward has slipped 0.2 per cent against the US dollar. The rupiah one-month non-deliverable forward erased an earlier gain of as much as 0.6 per cent.
President Prabowo Subianto's administration may be plunged further into turmoil as a result of these events. The appointment of Purbaya Yudhi Sadewa as the new Finance Minister is seen as an attempt to stabilise the situation, but it remains to be seen how effective he will be in this role.
Hundreds of demonstrations have taken place across 35 provinces in Indonesia, indicating a deep-seated dissatisfaction with the current administration. It is unclear whether the appointment of a new Finance Minister will be enough to quell the unrest and restore stability to the country.
As the situation continues to unfold, it is clear that Indonesia is facing a critical juncture in its history. The new Finance Minister, Purbaya Yudhi Sadewa, will have a significant role to play in steering the country through this period of instability and towards a more stable and prosperous future.
