Suahasil Replaces Purbaya as Indonesia's Minister of Finance
Suahasil Nazara replaces Purbaya as Finance Minister.
Fiscal stability remains key, ahead of the 2027 budget.
By Attala Sabian Andhika, Maria Ella Risandra Puruhita, Nashwah Putri Az-Zahra
September 18 2026, at 16:30 GMT+7
Indonesia's cabinet reshuffle on Monday (14/09) saw Suahasil Nazara formally installed as the Minister of Finance, stepping into the role vacated by Purbaya Yudhi Sadewa.
The transition was formalised through Presidential Decree Number 97/P of 2026, governing the remaining term of the Merah Putih Cabinet through 2029. Purbaya concluded his tenure after one year and six days in office, having assumed the post in September 2025 following Sri Mulyani Indrawati's departure.
The inauguration ceremony was held at the State Palace in Jakarta, attended by senior ministers, deputy ministers, and other high-ranking state officials. The transition marks Indonesia's third Finance Minister in two years.
Inauguration of the new Finance Minister Suahasil Nazara | Source: Detik
Purbaya's departure came shortly after he initiated a broad restructuring of officials within the Ministry of Finance, affecting positions across multiple tiers including senior leadership, administrators, supervisors, functional roles, and entities under the ministry's oversight.
The restructuring initiative drew internal pushback, as communications circulated within an internal ministry messaging channel suggested that certain officials were advised to set aside the rotation directives, neither the Ministry of Finance nor the Presidential Palace had issued an official statement on the matter.
While the formal basis for the cabinet change was not publicly disclosed, the proximity of the ministerial transition to the internal restructuring drew considerable institutional and public attention.
Ex-Finance Minister Purbaya Yudhi Sadewa after the handover ceremony for the Minister of Finance position | Source: Kompas
The appointment of Suahasil Nazara arrives at a critical juncture for Indonesia's fiscal management, as the government navigates a complex set of domestic and global economic pressures.
Suahasil brings with him an extensive track record in fiscal governance, having shaped macroeconomic and budgetary policy at the highest institutional levels across two successive administrations most notably as Deputy Minister of Finance from 2019, a position he held continuously through both the Jokowi and Prabowo governments.
Upon assuming office, Suahasil affirmed that the state budget would continue to operate on its established trajectory, committing to maintaining the fiscal deficit below the legally mandated 3% threshold. Economists have broadly identified fiscal credibility, expenditure quality, and macroeconomic stability as the incoming minister's foremost near-term priorities, with the 2027 State Budget formulation serving as an immediate and consequential early test of his leadership.
Sources:
CNBC
Bloomberg Technoz
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