Indonesia’s President Prabowo Subianto has carried out a sweeping cabinet reshuffle, removing top economic and security officials in the wake of violent anti-government protests that have shaken the country in recent weeks.
The unrest, which erupted in Jakarta in late August, was initially sparked by public outrage over lawmakers’ perks and housing allowances. Tensions escalated after an armed police vehicle struck and killed a 21-year-old delivery driver, triggering nationwide demonstrations. At least 10 people were killed as protests turned violent, posing the most serious challenge yet to Prabowo’s presidency less than a year into his term.
Protesters have demanded deep reforms across the police, military, and parliament, alongside urgent action to address economic hardship, mass layoffs, and declining purchasing power. Calls for a fairer taxation system have also grown louder.
On Monday, State Secretariat Minister Prasetyo Hadi confirmed that five ministers had been removed following a presidential review. Among them were Finance Minister Sri Mulyani Indrawati one of Indonesia’s longest-serving ministers and Budi Gunawan, the coordinating minister for politics and security. The ministers of cooperatives, youth and sport, and migrant workers protection were also replaced.
Indrawati’s departure came after days of speculation, intensified when her home was looted during the height of the protests. A former World Bank executive, she first joined the cabinet in 2005 under President Susilo Bambang Yudhoyono, returned in 2016 under President Joko Widodo, and was retained by Prabowo last year. She will be succeeded by economist Purbaya Yudhi Sadewa, former chairman of the Indonesia Deposit Insurance Corporation.
Economists say the incoming finance minister faces urgent tasks, including lowering value-added tax and restructuring government debt to restore public trust. An alliance of 383 Indonesian economists has urged the government to adopt a comprehensive economic strategy aimed at inclusive growth, quality job creation, and improved living standards for the nation’s 280 million citizens.
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