Indonesian President Prabowo Subianto has dismissed Finance Minister Nurmaya Yudhi Sadewa after one year in office, appointing Suahasil Nazara as his successor in a move signaling a potential shift in the country’s economic management. Suahasil, who previously served as deputy finance minister since 2019 and headed the fiscal policy agency for more than three years, was sworn in on September 14, 2026. The government did not provide an official explanation for the removal of Nurmaya, who had succeeded Sri Mulyani Indrawati in September 2025.

Suahasil is regarded as a seasoned technocrat with extensive experience in fiscal policymaking. Following his appointment, he emphasized continuity and fiscal prudence, reaffirming President Prabowo’s target to keep Indonesia’s fiscal deficit below the legal cap of 3 percent. “This is just a continuation, not a change,” Suahasil said, committing to better management of state finances and safeguarding the “health and credibility” of the national budget.

The reshuffle at the finance ministry follows Prabowo’s broader economic agenda, which includes an ambitious goal to raise annual growth to 8 percent from the current rate around 5 percent. Nurmaya was seen as less confident by markets, partially due to his advocacy for looser fiscal policy and his public criticism of the central bank’s actions amid rupiah depreciation. These positions deviated from the more fiscally disciplined approach favored by his predecessor, Sri Mulyani, who had garnered strong support from foreign investors.

Initial market reactions to the ministerial change were mixed. Jakarta’s benchmark stock index, which had dropped 2.5 percent on news of the reshuffle, closed with a marginal loss of 0.1 percent, reflecting cautious investor sentiment. Concerns remain over Indonesia’s growing fiscal pressures, attributed to expansive welfare programs and increased state involvement in the economy, which investors worry might exacerbate budgetary strains and pose risks to credit ratings. Additionally, an impending assessment by index provider MSCI has added to market uncertainty.

Industry analysts note that Suahasil’s appointment brings a more orthodox approach to fiscal management. Dedi Dinarto, associate director at advisory firm FGS Global, described the new finance minister as a “more familiar and orthodox technocrat” compared to his predecessor, who had a stronger growth-oriented mandate and was more willing to challenge policy norms. However, Dedi highlighted that Suahasil’s effectiveness would depend on his ability to balance fiscal discipline with the government’s ambitious growth and spending objectives.

The change marks the second significant finance ministry shake-up under President Prabowo’s administration, indicating ongoing adjustments as the government seeks to navigate complex economic challenges.