Indonesian President Prabowo Subianto has dismissed Finance Minister Purbaya Yudhi Sadewa after a dispute with a senior ministry official who previously served with Prabowo in the military, according to government sources.
Purbaya was replaced by his deputy, Suahasil Nazara, on Monday, becoming the third finance minister appointed by Prabowo since he became president in October 2024.
The dispute reportedly centred on Purbaya’s decision to reshuffle hundreds of officials within the Finance Ministry, particularly in the tax and customs departments.
Customs and Excise chief Djaka Budhi Utama and tax department head Bimo Wijayanto objected to the changes, saying they had not been consulted about the rotations, according to three government sources. Djaka subsequently raised his concerns directly with Prabowo.
Djaka had served alongside Prabowo in the military’s special forces and was appointed to his current civilian position by the president. Djaka has denied that there was a conflict with Purbaya before the minister’s dismissal.
The dispute reportedly intensified after an inauguration ceremony for the reshuffled officials last week. Purbaya said the changes were based on professional assessments and consultations with relevant officials.
According to sources, Djaka subsequently complained to Prabowo before the president travelled to India for the BRICS summit. Purbaya was then informed of his dismissal by the president’s spokesperson while he was answering lawmakers’ questions about the government’s 2027 budget plans.
Purbaya later acknowledged that the internal reshuffle had played a role in his removal, although he did not provide further details. He said he had followed Prabowo’s policies during his time in office.
The disagreement over the reshuffle was not the only source of tension during Purbaya’s tenure. He also had differences with officials over tax refunds and the management of government funds held by state-owned banks.
Purbaya also faced disagreement with Danantara chief Rosan Roeslani over a proposal involving Rp120 trillion in sovereign wealth fund profits that Purbaya had said could be transferred to help meet the government’s fiscal deficit target. Rosan later said no such plan had been discussed.
Suahasil, a veteran technocrat and former deputy finance minister, has said he will review the disputed appointments. In a message to senior ministry officials before his appointment, he had advised delaying the reshuffle ceremony until concerns raised by the tax and customs chiefs were addressed.
The change comes as Indonesia seeks to maintain investor confidence and strengthen fiscal management. Purbaya’s tenure was marked by strong economic growth but also a widening budget deficit and concerns over government policy and fiscal direction.
Suahasil now faces the task of maintaining fiscal discipline while supporting Prabowo’s economic growth objectives, with the government committed to keeping the budget deficit within its established limits.
The circumstances surrounding Purbaya’s dismissal have also drawn attention to the role of military figures and close presidential allies in senior government positions, although officials involved have given differing accounts of the events leading to the change.
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