BREAKING: President Prabowo Reshuffles Cabinet, Names Purbaya Yudhi Sadewa as Finance Minister
Main Takeaways
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Editor’s Note: This article has been updated as of Monday, Sept 8, 2025, 16:33 WIB to include the official names of newly appointed ministers.
JAKARTA, Investortrust.id — President Prabowo Subianto has reshuffled his cabinet, appointing Purbaya Yudhi Sadewa as Finance Minister to replace Sri Mulyani Indrawati, State Secretary Prasetyo Hadi announced on Monday, Sept 8, 2025.
The reshuffle also brought new faces into other key posts. Member of Parliament Mukhtarudin was named Minister of Protection of Indonesian Migrant Workers (P2MI), replacing Abdul Kadir Karding. Former Deputy Minister of Cooperatives Ferry Juliantono was promoted to Minister of Cooperatives, replacing Budi Arie.
In a major institutional change, Prabowo appointed Irfan Yusuf Hasyim, also known as Gus Irfan, head of the Hajj Organizing Agency (BPH), as the first Minister of Hajj and Umrah, leading a newly established ministry formed after deliberations with the House of Representatives on the draft law for hajj management.
The creation of the Ministry of Hajj and Umrah reflects the government’s effort to provide dedicated management for Indonesia’s large pilgrim quota, with the first minister and deputy minister sworn in today.
The shake-up also touched the youth portfolio, with Prabowo removing Dito Ariotedjo from his position as Minister of Youth and Sports. His replacement has not yet been announced. Meanwhile, Defense Minister Sjafrie Sjamsoeddin will concurrently serve as Coordinating Minister for Political, Legal, and Security Affairs following the removal of Budi Gunawan.
“Based on various considerations, inputs, and ongoing evaluations by the president, this afternoon he has decided to make changes in several cabinet positions,” State Secretary Prasetyo Hadi said at the Presidential Office prior to an inauguraton ceremony, accompanied by Cabinet Secretary Teddy Indra Wijaya.
The reshuffle came after weeks of protests and riots across Indonesia, during which Finance Minister Sri Mulyani’s house was looted, intensifying pressure on her position. Sources said Sri Mulyani had even sought to resign as tensions mounted over economic discontent.
Analysts said Purbaya’s appointment as finance minister will be closely watched by investors, given his previous role as chairman of the Deposit Insurance Corporation (LPS) and his reputation as a technocrat.
Here we go: Indonesia Finance Minister is removed and is replaced with Purbaya Yudhi Sadewa who is head of Indonesia’s Deposit Insurance Corporation.
— Trinh (@Trinhnomics) September 8, 2025
The key question for markets is whether Prabowo can have his cake and eat it too. To afford the lunch program, she had to make… https://t.co/AzJAhAMx9S pic.twitter.com/nBU1joAZLx
Market Sentiment
The cabinet reshuffle immediately weighed on investor sentiment. The Jakarta Composite Index (IHSG) fell 1.2% as uncertainty over economic policy and fiscal credibility overshadowed trading.
Head of Marketing, Strategy, and Planning Kiwoom Sekuritas Indonesia, Oktavianus Audi Kasmarandana, said the pressure on the index was driven by concerns about tax and fiscal reforms that had previously been poorly received by the market.
“A reshuffle that includes the Finance Minister shows a more tangible risk. This could be offset, however, if the government quickly provides a clear and credible policy roadmap to maintain fiscal discipline. In that case, market pressure would likely prove temporary and recovery could come faster,” Audi said in a text message on Monday.
He added that investors are awaiting a policy statement from Purbaya, especially regarding fiscal strategy and budget planning, to determine continuity and reduce risk perceptions.
Kiwoom Sekuritas said stocks with strong fundamentals remain attractive if the reshuffle only leads to technical corrections. The brokerage recommended trading buy positions in Aneka Tambang (ANTM) with a target price of Rp 4,000 and Bumi Resources Minerals (BRMS) with a target price of Rp 580, noting both benefit from commodity safe-haven themes.
Technically, Kiwoom expects the IHSG to move weaker within a support range of 7,670 and resistance at 7,890.
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