New Indonesian Finance Minister Pledges Fiscal discipline Amid Market Concerns
Jakarta, Indonesia – September 16, 2025 – Newly appointed Finance Minister Purbaya Yudhi Sadewa has moved swiftly to reassure markets and stakeholders, vowing to maintain fiscal discipline and largely adhere to the existing draft of the 2026 state budget. This commitment comes just weeks before the budget is slated to be finalized, following a significant cabinet reshuffle that saw the removal of highly-regarded Sri Mulyani Indrawati.
Minister Sadewa, speaking after a meeting with President Prabowo Subianto at the State Palace on Tuesday, stated the focus will be on “expediting government programs to make the economy grow faster.” He also hinted at potential new economic stimulus measures, acknowledging that “existing policies seem not to have been implemented very smoothly.”
Despite these potential adjustments, Sadewa emphasized the government’s commitment to keeping the budget deficit below the legally mandated 3% of Gross Domestic Product (GDP). He plans to lean heavily on the expertise of his predecessor, stating he will “study [Sri Mulyani’s] guidance to fix the weaknesses” within the ministry.
While Indrawati offered congratulations to Sadewa during the handover ceremony,she refrained from offering specific guidance. The two have a pre-existing professional relationship, having frequently collaborated through their respective roles at the Indonesia Deposit Insurance Corporation (LPS) and the Finance Ministry-led financial System Stability Committee (KSSK).
sudden Reshuffle Rattles Markets
The change in leadership at the Finance ministry was not a resignation, according to sources close to indrawati, but a removal from office. The reshuffle coincides with ongoing deliberations between the government and the House of Representatives regarding the 2026 budget.
Financial markets have reacted negatively to the news. The Indonesia Stock Exchange (IDX) Composite index has fallen sharply, dropping 1.78% on Tuesday following a 1.28% decline the previous day. The rupiah also experienced a significant, though temporary, dip against the US dollar, falling to Rp 16,565 from around Rp 16,300 before partially recovering.
Budget Deliberations Continue
Sadewa is scheduled to appear before House of Representatives Commission XI on Wednesday to discuss the state budget. He reiterated his commitment to the current draft, describing it as designed to “maintain the sustainability of fiscal policy that is disciplined and simultaneously stands with the people.” He emphasized the importance of effective state spending,benefits for citizens,and bolstering national economic resilience in the face of global uncertainty.
Key Takeaways:
* Fiscal Stability: New finance Minister Purbaya Yudhi Sadewa prioritizes maintaining fiscal discipline and adhering to the existing 2026 budget draft.
* Economic Stimulus: Potential new economic stimulus measures are under consideration to accelerate economic growth.
* Market Reaction: The cabinet reshuffle, particularly the removal of Sri Mulyani Indrawati, has triggered negative reactions in financial markets.
* Predecessor’s Guidance: Sadewa intends to seek guidance from Indrawati to address weaknesses within the Finance Ministry.
SEO Notes:
* Keywords: Indonesia,Finance Minister,Purbaya Yudhi Sadewa,Sri Mulyani Indrawati,2026 Budget,Rupiah,IDX,economic Stimulus,Fiscal Discipline,Prabowo Subianto
* Internal Linking: Linked to related Jakarta Post articles within the text.
* Meta Description: Indonesia’s new Finance Minister Purbaya Yudhi Sadewa pledges fiscal discipline and continuity of the 2026 budget despite market concerns following Sri Mulyani Indrawati’s removal.
* Headline: Clear, concise, and includes key keywords.
* Readability: Written in a clear, journalistic style with short paragraphs and bullet points for key takeaways.
