Prabowo Appoints Suahasil Nazara as Indonesia Finance Minister

President Prabowo Subianto dismissed Finance Minister Purbaya Yudhi Sadewa and appointed Deputy Finance Minister Suahasil Nazara as the new finance chief on September 14, 2026. The transition, formalized via Presidential Decree No. 97/P of 2026, marks the second time Prabowo has replaced the finance minister since taking office.

Purbaya was removed after a one-year tenure defined by growth-focused fiscal policies that created friction with monetary authorities. Specifically, Purbaya moved over 200 trillion rupiah of government cash reserves from Bank Indonesia to state-owned banks to increase lending, a strategy that preceded the July resignation of Bank Indonesia Governor Perry Warjiyo. Purbaya also faced objections from the state asset fund Danantara over a push to remit 120 trillion rupiah in dividends to the state budget.

Nazara, a veteran technocrat and former deputy finance minister, was sworn in at the Presidential Palace in Jakarta. He pledged to maintain a healthy and credible state budget, vowing to keep the fiscal deficit below the 3 percent legal limit as the government prepares the 2027 state budget. Nazara stated that efficiency in state spending means optimizing expenditures for maximum public benefit rather than simply cutting budgets.

Market reactions were initially volatile, with Indonesian stocks dropping 2.6 percent before recovering. Following the appointment of Nazara, the Indonesia Stock Exchange composite rose 3.29 percent, signaling investor confidence in a return to fiscal prudence.