Ousted Indonesia Finance Minister Says He Was Upset but Half Expected His Removal

Indonesia’s former finance minister Purbaya Yudhi Sadewa said he was upset after being abruptly removed from office, but admitted he had partly expected the decision.

President Prabowo Subianto dismissed Purbaya on Monday (Sept 14) and appointed his deputy, Suahasil Nazara, as his replacement. The sudden move came just days after Purbaya marked a year as finance minister.

Purbaya said he learned of his removal through a phone call from presidential spokesman Prasetyo Hadi while he was attending a parliamentary meeting. He was later seen leaving the meeting before Nazara was sworn in at the State Palace.

Speaking to reporters after a handover ceremony at the Finance Ministry on Tuesday, Purbaya said the night after his dismissal had been difficult.

He said he was upset initially but had since come to terms with the decision. Purbaya also said he had half expected to be removed because of a recent decision he had made, although he did not elaborate.

Purbaya said he had no policy disagreement with Prabowo, but suggested that differences with other officials may have contributed to his departure. Recent changes involving hundreds of officials in the Finance Ministry’s tax, customs and excise offices had been among the issues during his final weeks in office.

His removal comes as Indonesia faces concerns over fiscal policy and investor confidence. During Purbaya’s tenure, the economy recorded its fastest growth in three years, while the country also posted its widest budget deficit in more than two decades outside the pandemic period.

Credit-rating agencies Fitch and Moody’s have also lowered their outlooks for Indonesia amid concerns over fiscal policy and economic management.

Nazara, 55, has pledged to maintain fiscal discipline and keep the budget deficit within Indonesia’s legal limit of 3 per cent of gross domestic product. A veteran technocrat and former deputy finance minister, he is now Prabowo’s third finance minister since taking office in October 2024.

Purbaya, meanwhile, described his year as finance minister as a decent tenure and said he planned to spend his retirement quietly, including fishing at a pond behind his home.