Veteran fiscal policymaker takes charge as government emphasizes credible and healthy state finances.
Indonesia has changed finance ministers again, placing a longtime Ministry of Finance insider in charge as the government faces pressure to maintain the credibility and sustainability of the state budget.
Prabowo Appoints Suahasil Nazara
President Prabowo Subianto appointed Suahasil Nazara as Indonesia’s new finance minister on September 14, 2026, replacing Purbaya Yudhi Sadewa. Suahasil, who had been serving as deputy finance minister, was sworn in at the State Palace in Jakarta. Purbaya had held the finance minister position since September 8, 2025, after replacing Sri Mulyani Indrawati.
Suahasil Prioritizes APBN Credibility
After his inauguration, Suahasil said Prabowo had specifically instructed him to maintain the health and credibility of state finances. He said the state budget, or APBN, must remain trusted while supporting government priority programs, economic growth, and domestic stability. Suahasil also committed to keeping the budget deficit below 3 percent of gross domestic product, in line with Indonesia’s State Finance Law.
Long Career Inside Finance Ministry
Suahasil has extensive experience in economics, academia, and fiscal policy. He earned an economics degree from the University of Indonesia in 1994, a Master of Science from Cornell University in 1997, and a PhD from the University of Illinois at Urbana-Champaign in 2003. He later led the Ministry of Finance’s Fiscal Policy Agency before President Joko Widodo appointed him deputy finance minister in October 2019, a position he continued to hold under Prabowo.
Purbaya Leaves After About One Year
Purbaya’s tenure ended after roughly one year as finance minister. On the morning of September 14, before his replacement was announced, he attended a meeting with the Regional Representative Council and said Indonesia’s economy remained resilient despite global uncertainty, citing continued economic growth, controlled inflation, and a favorable trade balance. He later left the meeting after receiving a phone call, before the government formally announced the ministerial change.
Economists Focus on Fiscal Challenges
Economists cited by BBC News Indonesia offered differing interpretations of the reshuffle. CELIOS economist Nailul Huda argued that Suahasil faces pressure to restore fiscal discipline and investor confidence, while CSIS researcher Nicky Fahrizal said the appointment comes as Indonesia faces economic vulnerabilities requiring stronger regional growth and fiscal consolidation. INDEF senior economist Tauhid Ahmad described the change more as a government refresh, noting Suahasil’s long experience within the Finance Ministry. These assessments represent the analysts’ views rather than an official explanation for Purbaya’s removal.
Suahasil Nazara’s appointment places an experienced fiscal policymaker at the center of Indonesia’s state finances as the government prepares for its next budget priorities. For Indonesians, his commitment to maintaining a healthy, credible APBN will be central to evaluating his tenure. For Singaporean readers following Indonesia’s economy, his approach to fiscal discipline, government spending, and economic stability will be important developments to watch.
Sources: BBC (2026) , CNN Indonesia (2026)
Keywords: Suahasil Nazara Finance Minister, Purbaya Yudhi Sadewa, Indonesia Finance Minister, Prabowo Cabinet Reshuffle, Indonesia State Budget, APBN Credibility
