President Prabowo Appoints Suahasil Nazara as Indonesia's New Finance Minister

President Prabowo Subianto dismissed Finance Minister Purbaya Yudhi Sadewa on Monday, September 14, 2026, and appointed Suahasil Nazara as his replacement. Nazara, who has served as deputy finance minister since 2019, was sworn in at the State Palace under Presidential Decree No. 97P of 2026. This appointment marks the third finance minister in less than two years for the Prabowo administration, following the tenure of Sri Mulyani Indrawati.

Nazara pledged to maintain a healthy and credible state budget, specifically vowing to keep the fiscal deficit below the legal cap of 3 percent. He stated that President Prabowo instructed him to ensure accountability and efficiency in state spending to support the government's priority programs. Nazara also faces the immediate task of finalizing the 2027 state budget bill, which was unveiled in August and is expected to be passed by lawmakers in late September.

Purbaya's one year in office was characterized by economic challenges, including a falling rupiah and a growing fiscal deficit. Reports indicate friction between Purbaya and Bank Indonesia over his policy of injecting liquidity into state owned banks, as well as a dispute regarding the remittance of Rp 120 trillion in dividends from the state asset fund Danantara. Purbaya was reportedly attending a parliamentary hearing when he received the call to leave his post.

Market reactions were mixed but trended toward recovery. The Jakarta Composite Index fell as much as 2.5 percent during the session before recovering to close with a marginal decline of 0.10 percent. Some analysts attributed this rebound to Nazara's familiarity with fiscal management. Meanwhile, Investment and Downstreaming Minister Rosan Roeslani stated that the planned transfer of debt and management for the Whoosh high speed rail service to the Finance Ministry would continue despite the leadership change.

Outlets with a center lean focused on the frequency of the turnover and the general fact of the appointment. Center left sources provided detailed context on Purbaya's policy disputes and the positive reception from some lawmakers. Center right coverage emphasized the mounting fiscal pressure and the expectation that Nazara will adopt a more cautious approach to management.