• Indonesian President Prabowo Subianto has replaced long-serving finance minister Sri Mulyani Indrawati with Purbaya Yudhi Sadewa.
• The change follows two weeks of protests demanding fairer taxation and accountability in government spending.
• Purbaya aims for economic growth targets of 6%-8%, addressing concerns among investors over fiscal stability.
• The stock market and the rupiah reacted negatively to the announcement of Mulyani's removal, indicating investor apprehension.
• Sri Mulyani is credited with significant reforms and fiscal credibility in Indonesia over her long tenure.

Indonesia has appointed Purbaya Yudhi Sadewa as finance minister, following the abrupt removal of the well-respected Sri Mulyani Indrawati. This reshuffle comes amid significant public unrest and protests that have taken place over the past two weeks, with citizens demanding a fairer taxation system. State Secretariat Minister Prasetyo Hadi announced Mulyani's departure, highlighting the current minister's extensive experience and previous successes steering Indonesia's economy through turbulent times, including the global financial crisis and the COVID-19 pandemic, according to Reuters.

Purbaya, previously head of the Indonesia Deposit Insurance Corporation and equipped with advanced degrees in economics from Purdue University, has pledged to pursue an ambitious growth target of "not impossible" 8%. He emphasized the need for enhanced collaboration between the government and private sectors in driving economic recovery after years of stagnation, particularly as the nation grapples with widespread dissatisfaction over fiscal policies and spending priorities, as reported by Reuters and Channel News Asia.

Market reactions to the reshuffle have been tumultuous, with Indonesia's stock index declining significantly and the rupiah falling over 1% against the US dollar as investors expressed concerns about potential shifts in fiscal policy and stability. Experts warn that Mulyani's exit could lead to escalating deficits if Purbaya adopts a more populist approach, especially given the backdrop of ongoing public protests and demands for accountability in government spending, according to Reuters and Reuters.

During the formal handover ceremony, Purbaya acknowledged that his new role would present challenges amidst global economic volatility and shifting geopolitical landscapes. He expressed commitment to fostering significant economic involvement from both government and business sectors, aspiring to cultivate a more resilient economic framework for Indonesia, as mentioned by Reuters and Channel News Asia.