Prabowo fires long standing Indonesian finance minister Sri Mulyani in wake of protests, stock market drops 1.28%

Indonesia's longstanding finance minister, Sri Mulyani Indrawati, has been fired by Indonesian President Prabowo Subianto during a cabinet reshuffle on Sep. 8.

Replacing her is veteran economist Purbaya Yudhi, who had previously served as the head of the Indonesia Deposit Insurance Corporation (LPS).

The reshuffle also saw multiple other changes, including the replacement of coordinating politics and security minister Budi Gunawan with an interim coordinating minister, Jakarta Post reported.

They come in the wake of recent violent protests across the country in recent weeks over key issues like tax hikes and parliamentary housing benefits, as well as the killing of a Gojek driver by a police vehicle.

At least 10 deaths have been recorded to date.

While the reasons behind Mulyani's replacement were not stated, Indonesian State Secretary, Prasetyo Hadi, told reporters that the decision was made "based on various developments, inputs and continuous evaluations carried out by the President," The Straits Times quoted.

Home looted a week ago

Mulyani was a target of public anger just a week ago on Aug. 31, with her home being one of many ministers' homes looted during the protests.

She made a public apology in the wake of the crime, conveying her commitment to improving her performance in the future.

"We apologise, there are certainly still many shortcomings. We will continue to improve," she wrote on Instagram.

"As a state official, I was sworn to uphold the 1945 Constitution and all laws. This is not a matter of personal preference," she added.

"This is an honour and an incredibly noble task. It is not easy and is very complex, requiring wisdom -- empathy, and sensitivity to listen to and understand the voices of the people. This is related to the fate of the Indonesian people and the future of the Indonesian nation."

A prominent technocrat

Mulyani is one of Indonesia's most prominent technocrats, first taking on the role of finance minister 20 years ago.

She was Finance Minister from 2005 to 2010 under former president Susilo Bambang Yudhoyono, and most recently again from 2016 to 2025 under former president Joko Widodo and incumbent president Prabowo.

She was expected to resign from her ministerial post when Widodo stepped down, repeatedly hinting at her impending departure.

But to the surprise of many, Prabowo announced that she was his pick for finance minister, despite reportedly initially favouring the splintering of the ministry.

Indonesian outlet Kompas described Mulyani as a technocrat who was regarded highly internationally, saying that her presence brought confidence in the then-new government.

She was also described as disciplined, and said some considered her "stingy", possibly foreshadowing the complaints directed at Prabowo's austerity measures.

News of her dismissal from office resulted in an instant plunge in the Indonesian stock market by 1.28 per cent, just after news of her dismissal broke.

The Business Times also reported that the Rupiah weakened by 0.75 per cent.

Top image via Sri Mulyani Indrawati/Facebook