Indonesia's Bold Cabinet Shake-up: Sri Mulyani Indrawati Departs, Purbaya Yudhi Sadewa Takes the Helm

Sri Mulyani Indrawati, Indonesia's long-serving and respected finance minister, has been replaced as part of a cabinet reshuffle. Economist Purbaya Yudhi Sadewa, formerly heading the Indonesia Deposit Insurance Corporation, takes her place amid ongoing protests demanding a fairer taxation system.

In a significant cabinet reshuffle by President Prabowo Subianto, Indonesia's finance sector saw a major change with the removal of its well-regarded finance minister, Sri Mulyani Indrawati, on Monday. Her replacement is economist Purbaya Yudhi Sadewa, sworn in shortly after the announcement by state secretariat minister Prasetyo Hadi.

With a strong background in economics, Purbaya previously led the Indonesia Deposit Insurance Corporation and served various influential roles, including deputy minister at the maritime and investment ministry. Sri Mulyani, praised for her reforms and steering the economy through global crises, departs after serving under three presidents and with a stint as a World Bank managing director.

The reshuffle comes amidst civil unrest and protests over taxation fairness. The stock market reacted with the main index falling, and the rupiah stabilizing after volatile trading. Purbaya brings a robust academic foundation from Purdue University and leadership experience from state-owned Danareksa Securities.

(With inputs from agencies.)