A third finance chief

President Prabowo Subianto fired Purbaya Yudhi Sadewa and promoted deputy finance minister Suahasil Nazara, giving Indonesia its third finance minister in two years.

Investors want discipline

Markets are looking for steadier fiscal policy after credit outlook cuts, record rupiah lows, and a bruising year for Indonesia’s benchmark index.

“The new finance minister will need to be much clearer about his priorities”

Nazara brings experience

Nazara spent seven years as deputy finance minister and previously led the fiscal policy agency, making him a familiar name inside the budget machine.

“He is a known technocrat with deep Finance Ministry experience”

The economy is squeezed

Higher energy costs from the Iran war-led crisis pushed up subsidy bills and forced cuts to flagship programs, tightening Indonesia’s fiscal room.

Deficit pledge matters

The 2026 fiscal deficit is expected to widen to 2.85% of GDP. Nazara’s first promise was to protect budget credibility and keep it below 3%.

“vowed to safeguard the budget's credibility”

Central bank worries linger

The reshuffle follows Perry Warjiyo’s resignation and leadership changes at Bank Indonesia, raising questions about how much economic power Prabowo now holds.

“a further, and worrisome, sign of the consolidation of economic power”

Policy shift under watch

Analysts see signs of a move away from populist intervention, but the 2027 budget will show whether spending plans are trimmed or only repackaged.

“If he does that while protecting fiscal credibility, that would point to a genuine shift”