Key facts
- President Prabowo Subianto sacked Finance Minister Purbaya Yudhi Sadewa.
- The dismissal followed a clash between Purbaya and customs chief Djaka Budhi Utama over official reshuffling.
- Djaka Budhi Utama, a former member of Prabowo's special forces team, reportedly had direct access to the president.
- Suahasil Nazara, a deputy finance minister, has been appointed as the new finance minister.
- Analysts suggest Prabowo's governance style favors loyalists over technocrats.
- Purbaya also had differences with the head of the tax department, Bimo Wijayanto, over tax refunds.
Indonesian President Prabowo Subianto has dismissed Finance Minister Purbaya Yudhi Sadewa following a dispute with a senior customs official, according to three government sources. The sacking, which occurred on Monday, highlights Prabowo's governance style, which analysts suggest prioritizes loyalty from his inner circle over professional expertise.
The clash reportedly erupted between Purbaya and customs chief Djaka Budhi Utama over the reshuffling of hundreds of officials within the finance ministry, particularly in the tax and customs directorates. Djaka, who was a member of Prabowo's former special forces team, took his objections directly to the president. Sources indicated that Djaka, unlike Purbaya, enjoyed unusually direct access to Prabowo.
Analysts view Purbaya's removal as a potential move to restore confidence in Indonesia's $1.5 trillion economy, which has faced months of policy uncertainty. However, the immediate cause appears to be bureaucratic infighting.
This episode is seen as another instance of Prabowo's leadership style, where decisions are influenced by feedback from trusted allies, including former military figures now in civilian roles. This can sometimes override technocratic decision-making, according to observers.
Djaka has denied any conflict preceded the sacking. The presidential office and Bimo Wijayanto, head of the tax department who also had differences with Purbaya over tax refunds, did not respond to requests for comment.
Suahasil Nazara, a veteran technocrat promoted from deputy finance minister, has been appointed as the new minister and stated he would review all appointments. He had previously advised Purbaya to postpone the official ceremony for the reshuffled officials until concerns were addressed.
Purbaya also had past disagreements with former Bank Indonesia Governor Perry Warjiyo over government cash placement policies and with Danantara chief Rosan Roeslani regarding the transfer of profits from the sovereign wealth fund.