Jakarta – President Prabowo Subianto has sacked Finance Minister Purbaya Yudhi Sadewa after a heated disagreement with customs and excise chief Djaka Budhi Utama, who served alongside Prabowo in the president’s former special‑forces unit. The move, confirmed by three government sources, underscores the president’s reliance on trusted allies in key cabinet posts.
Background to the dismissal
According to the sources, the conflict erupted over a large‑scale reshuffling of finance‑ministry officials, particularly within the tax and customs directorates. Djaka Budhi Utama and tax department head Bimo Wijayanto objected to the rotation, saying they had not been consulted. Djaka took his concerns directly to President Prabowo, bypassing the finance minister.
Both Djaka and Bimo were hand‑picked by Prabowo, and Djaka’s prior service with the president’s special‑forces team gives him unusually direct access to the leader. Media reports also note that Djaka was previously found guilty in a military court for kidnapping and forcibly disappearing rights activists in the 1990s, a fact he denied any recent conflict over.
Implications for Indonesia’s economy
Analysts and investors welcomed the removal of Purbaya, viewing it as a potential boost to confidence in Indonesia’s $1.5 trillion G20 economy after months of policy uncertainty. The finance ministry’s internal disputes have been cited as a factor that could hinder revenue collection and fiscal planning.
In a brief statement, Purbaya said the rotation was based on professional assessments and consultation with relevant officials. He also noted differences with tax chief Bimo over refund policies: Bimo favored timely repayments, while Purbaya argued for stricter scrutiny to prevent revenue leakages.
New leadership and next steps
Following the dismissal, Deputy Finance Minister Suahasil Nazara was promoted to the top post. Suahasil, a veteran technocrat, told reporters he would review all recent appointments and ensure the rotation plan aligns with revenue‑collection goals.
In a WhatsApp message seen by Reuters, Suahasil advised Purbaya to postpone the inauguration ceremony until concerns from the tax and customs chiefs were addressed. The customs office now awaits direction from the new finance minister on the pending appointments.
Broader governance style
The episode illustrates President Prabowo’s personal style of governance, which emphasizes loyalty and trusted inner‑circle members over technocratic expertise. Critics, such as economist Wijayanto Samirin of Paramadina University, warn that this approach could come at the expense of a merit‑based bureaucracy.
Prabowo has also placed former soldiers in other senior roles, including Defence Minister Sjafrie Sjamsoeddin and cabinet secretary Teddy Indra Wijaya. The president has previously stated that a successful leader must choose “the best” people for the team, not based on family, friendship, or crony ties.
Reactions
Djaka Budhi Utama denied any conflict preceding the sacking, and the presidential office did not respond to requests for comment. The finance ministry’s internal dynamics, including past clashes with Bank Indonesia’s former governor Perry Warjiyo and sovereign‑wealth‑fund chief Rosan Roeslani, suggest a broader pattern of friction within the administration.
Observers will watch how the new finance minister navigates these relationships and whether the reshuffle stabilizes policy implementation ahead of Indonesia’s 2027 budget plan.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
