Indonesian President Removes Finance Minister Following Deadly Protests
Jakarta, Indonesia – September 4, 2023 – Indonesian President Joko widodo has removed Finance Minister Sri Mulyani Indrawati from her post in the wake of widespread and violent protests sparked by controversial housing allowances for members of Parliament.The move comes as the government attempts to quell public anger over economic hardship and perceived corruption.
The protests, which gripped Southeast Asia’s largest economy-home to over 280 million people-began after reports surfaced that all 580 members of the House of Representatives where receiving a monthly housing allowance of 50 million rupiah ($3,075), along with their salaries. This allowance, introduced last year, is nearly ten times the minimum wage in Jakarta.
Demonstrations escalated over five days,resulting in at least seven to ten reported deaths,according to police and the National Commission on Human Rights (Komnas HAM).The deaths were attributed, in part, to an “inhumane approach” by security forces, Komnas HAM reported. The protests intensified following the death of 21-year-old ride-hailing driver Affan Kurniawan, who fell after being struck by an armored police car during a presentation.
amidst the unrest,the homes of several lawmakers,including Indrawati’s residence in South Tangerang,were looted on August 31.
President Widodo responded by revoking the lawmakers’ perks and privileges, including the housing allowance, and suspending overseas trips. He also dismissed the ministers of cooperatives, youth and sport, and migrant workers protection, after facing criticism for a photograph showing him playing dominoes with a former illegal logging suspect.
The removal of Indrawati, who is recognized for maintaining a stable fiscal policy, triggered a 1.28% drop in the Jakarta Composite Index on Monday, closing at 7,766.85, down 100.5 points. The rupiah, though, strengthened 0.75% against the U.S. dollar, reaching 16,309.
Economists note Indrawati’s long tenure saw her accommodate aspiring presidential programs, leading to increased government debt. Her successor, Thomas Lembong (known as Sadewa), is described as a capable economist but lacks extensive experience in managing fiscal and state finances.Indrawati is one of Indonesia’s longest-serving finance ministers.
