Jakarta (VNA) - Indonesian President Prabowo Subianto has appointed Suahasil Nazara as finance minister, replacing Purbaya Yudhi Sadewa in a cabinet reshuffle seen as a significant move in the country’s fiscal policy management.
Speaking after the swearing-in ceremony on September 14, Suahasil said the priority is maintaining a credible state budget (APBN). He also pledged to keep the budget deficit below the legal ceiling of 3% of GDP.
The new minister also stressed the need to ensure the credibility of publicly released budget information and fiscal policies that support the Government’s priority programmes.
The change of Finance Minister came amid persistent investors’ concerns over the consistency of policy management and the scale of fiscal expansion in Indonesia.
During Purbaya’s roughly one-year tenure, the IDR weakened significantly, and the budget deficit widened, while policies aimed at accelerating growth also sparked debate over fiscal discipline and monetary-fiscal policy coordination.
Notably, Fitch and Moody’s this year revised Indonesia’s credit outlook from “stable” to “negative”, citing concerns including policy uncertainty and fiscal spending plans. The move has added pressure on the Indonesian government to maintain investors’ confidence and manage fiscal risks.
ASEAN specialist at Singapore-based Aletheia Capital Angus Mackintosh said Suahasil’s appointment could bring more stable and predictable policies. He noted that Suahasil had worked under former Finance Minister Sri Mulyani Indrawati and had a technocratic background, suggesting that his appointment could be seen as a step towards strengthening stability.
The appointment comes as Indonesia prepares to implement fiscal policies for 2027, with the government facing the challenge of maintaining its priority programmes while controlling the deficit and strengthening market confidence./.
