Finance Minister Sri Mulyani Indrawati was removed from her post shortly after demonstrators targeted her residence.
Published On 9 Sep 2025
In a rapid response to escalating unrest, Indonesian President Prabowo Subianto has enacted a significant cabinet reshuffle, dismissing five ministers following a series of violent protests that have swept the nation of 285 million. This shakeup occurred on September 9, 2025, as public frustration with Prabowo’s governance intensified, particularly concerning the economic challenges faced by ordinary citizens.
The unrest reached a boiling point in late August, triggered by perceptions of government indifference to rising inflation and economic hardship. Among those ousted was Finance Minister Sri Mulyani Indrawati, recognized for her esteemed positions at the International Monetary Fund (IMF) and the World Bank, along with Budi Gunawan, who oversaw political and security affairs.
In her stead, economist Purbaya Yudhi Sadewa, currently the head of the Deposit Insurance Corporation, has been appointed. Sadewa, who boasts years of fiscal expertise across multiple administrations, stated at his introductory press conference his commitment to fostering economic growth through strategic fiscal measures while maintaining existing systems.
Purbaya’s appointment aligns with Prabowo’s broader strategy to address the public’s frustrations—a strategy hindered by discontent over a controversial housing allowance recently granted to lawmakers that totaled 50 million rupiah (approximately $3,075), a figure that far exceeds the minimum wage and sparked public outrage.
The violent demonstrations resulted in at least seven confirmed deaths, with conflicting reports indicating as many as ten fatalities. Tensions escalated further due to the tragic death of 21-year-old delivery driver Affan Kurniawan, who was reportedly killed by an armored police vehicle while fulfilling a food delivery in a protest area, galvanizing public anger.
Poverty and high youth unemployment rates have forced many Indonesians into low-paying gig jobs, increasing the stakes of Kurniawan’s death and fueling the protests, which met with heavy-handed police measures including tear gas and water cannons.
In a controversial stance, President Prabowo has instructed security forces to adopt a stringent approach against demonstrations displaying “treasonous” activities. Nonetheless, protesters have remained resolute, targeting both governmental buildings and residences of specific officials. Indrawati’s home was not spared during this upheaval.
Following the revocation of lawmakers’ lavish perks, including the contentious housing allowance, relative calm has returned to Indonesia. However, the atmosphere remains tense, partly fueled by fears over the potential expansion of military authority under Prabowo’s leadership, a figure previously shunned on the international stage.