Prabowo Cabinet Reshuffle 2025: Sri Mulyani Replaced as Indonesia’s Finance Minister
Jakarta, September 2025 — President Prabowo Subianto has officially announced a major cabinet reshuffle in Indonesia, marking one of the most significant political shifts in his administration. The most notable change is the replacement of Finance Minister Sri Mulyani Indrawati, a highly respected figure in both domestic and global economic circles, with Purbaya Yudhi Sadewa.
This decision comes after weeks of nationwide protests triggered by public anger over lawmakers’ housing perks and economic discontent. The Prabowo cabinet reshuffle 2025 is seen as an attempt to restore stability and respond to demands for reform.
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Sri Mulyani Replaced as Indonesia’s Finance Minister
Sri Mulyani, who has served multiple terms as Indonesia’s Finance Minister, was praised for her fiscal discipline and crisis management skills. However, amid political unrest and increasing pressure on the government, she was dismissed on September 8, 2025.
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Her successor, Purbaya Yudhi Sadewa, is known as a pro-growth economist. He has pledged to push Indonesia’s GDP growth to 6–8%, aligning with President Prabowo’s ambitious development agenda.
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Other Key Changes in the 2025 Cabinet Reshuffle
In addition to the finance portfolio, several other ministerial posts were reshuffled:
Cooperatives Minister: Budi Arie Setiadi replaced by Ferry Juliantono
Migrant Workers Protection Minister: Abdul Kadir Karding replaced by Mukhtarudin
Coordinating Minister for Politics and Security: dismissed, replacement pending
Youth and Sports Minister: dismissed, replacement pending
New Ministry of Hajj and Umrah: created, with Mochamad Irfan Yusuf appointed as Minister and Dahnil Anzar Simanjuntak as Deputy
This broad shake-up highlights Prabowo’s effort to strengthen political control and regain public trust.
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Market and Economic Impact
The sudden removal of Sri Mulyani unsettled investors and financial markets.
The rupiah fell by over 1% against the U.S. dollar.
The Jakarta Stock Exchange dropped nearly 2% in the immediate aftermath.
Bank Indonesia intervened to stabilize the currency.
Analysts worry that fiscal discipline may weaken as Prabowo pushes large-scale social spending programs, including his free meals initiative for students and low-income families.
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Why the Cabinet Reshuffle Matters
The Prabowo cabinet reshuffle 2025 is not just a political move—it has major implications for Indonesia’s economy, governance, and international reputation.
While the dismissal of ministers may temporarily ease public anger, experts argue that deeper reforms are needed to address inequality, corruption, and governance challenges.
> “Replacing ministers alone won’t solve the structural problems driving protests,” analysts noted.
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Conclusion
President Prabowo’s reshuffle, including the removal of Sri Mulyani as Indonesia’s Finance Minister, represents a turning point in his administration. The political gamble is aimed at restoring stability, but questions remain about whether it will be enough to rebuild public trust and reassure global investors.
For now, all eyes are on how Purbaya Yudhi Sadewa will handle Indonesia’s economy during this turbulent period.
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