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Cabinet reshuffle: Prabowo’s move to realize 8% growth target?

Purbaya’s appointment is to address public frustration with Indonesia's economic conditions, particularly regarding tax increases, unemployment and layoffs, issues that Sri Mulyani failed to resolve. 

Yophiandi Kurniawan (The Jakarta Post)
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Sat, September 13, 2025 Published on Sep. 11, 2025 Published on 2025-09-11T16:59:22+07:00

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Old and new: Former finance minister Sri Mulyani Indrawati (left) and her successor Purbaya Yudhi Sadewa greet journalists on Sept. 9 after a ceremony to mark the transfer of authority in Jakarta. Old and new: Former finance minister Sri Mulyani Indrawati (left) and her successor Purbaya Yudhi Sadewa greet journalists on Sept. 9 after a ceremony to mark the transfer of authority in Jakarta. (Antara/Hafidz Mubarak)

L

ess than a year into office, President Prabowo Subianto has undertaken a bold cabinet reshuffle. While five ministers were removed, only three were immediately replaced, the other two positions are reportedly still vacant due to the lack of suitable candidates.

The reshuffle signals Prabowo’s attempt to operate more independently. No longer under the shadow of his predecessor Joko “Jokowi” Widodo, who helped him win presidency, the replacement of Sri Mulyani Indrawati as finance minister, in particular, suggests that Prabowo fully intends to steer Indonesia toward the new center of world politics, the BRICS nations, especially China and Russia.

The reshuffle raises both hopes and fears, a natural consequence of change. However, in politics, a swift move can be like killing two birds with one stone.

The first stone addresses domestic grievances, namely the demands of demonstrators, students and young people who have protested online and on the streets. These groups, generally Gen-Z and younger millennials, were the primary constituency for Prabowo and his running mate Gibran Rakabuming Raka in the 2024 election. They recently presented their short-term and long-term demands in the format of a "17+8" list.

In addition to the demands of young people, there are also demands from Prabowo’s loyalists who are frustrated with Jokowi’s shadow influencing every Prabowo policy. Prabowo had even accommodated ministers who had served during Jokowi's two terms, including Sri Mulyani, Budi Gunawan and Budi Arie, who have all removed.

Secondly, the reshuffle augurs a new orientation toward China and Russia regarding how Indonesia will manage its economy. For decades, Indonesia has been under the shadow of IMF and World Bank prescriptions, which tended to follow frameworks designed by the United States and Europe. This shift was symbolized by Prabowo's appearance as a guest of honor at the Chinese military parade celebrating the defeat of Japan in World War II on Sept. 3 in Beijing, where he stood alongside Chinese President Xi Jinping, Russian President Vladimir Putin and North Korean President Kim Jong-un.

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The demonstrations in late August, which involved the burning of local government offices and police stations and the looting of the homes of public officials illustrated the public's frustration. Signs of unrest began when the people of Pati, Central Java, demanded impeachment of Regent Sudewo, a politician from Prabowo’s Gerindra Party, who was perceived as threatening the public with a decision to raise taxes.

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