President Prabowo Subianto has announced significant changes to the composition of his Red and White Cabinet, replacing five ministers and introducing a new ministry.
The announcement was delivered by Minister of State Secretary Prasetyo Hadi at the Presidential Office, Presidential Palace Complex, Central Jakarta, on Monday (8 September 2025).
“Based on various considerations, input, and continuous evaluations carried out by the President, this afternoon the President decided to make changes to the composition of the Red and White Cabinet in several positions,” Prasetyo said.
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The reshuffle affects five existing ministries:
- The Coordinating Ministry for Political and Security Affairs, now led by Budi Gunawan.
- The Ministry of Youth and Sports, continuing under Dito Ariotedjo.
- The Ministry of Finance, where Sri Mulyani has been replaced by Purbaya Yudhi Sadewa.
- The Ministry for the Protection of Indonesian Migrant Workers, now headed by Mukhtarudin, replacing Abdul Kadir Karding.
- The Ministry of Cooperatives, with Fery Juliantono replacing Budi Arie Setiadi.
Alongside these changes, President Prabowo inaugurated the newly established Ministry of Hajj and Umrah, transformed from the previous BP Haji institution.
“One is a new ministry and five are ministries that have undergone changes in their composition. So this afternoon, the inauguration will be held at the State Palace,” Prasetyo added.
Foreign Media and Market Reactions
Of all the changes, the replacement of long-serving Finance Minister Sri Mulyani drew the greatest international attention. Her successor, Purbaya Yudhi Sadewa, formerly head of the Deposit Insurance Corporation (LPS), was profiled extensively by foreign outlets.
Reuters published an article titled “Indonesia Replaces Respected Finance Minister With Economist Promising Rapid Growth”.
The London-based outlet underlined Purbaya’s previous career and his references to the economic philosophy of his father, Soemitro Djojohadikoesoemo, an economist and former minister under the Soeharto administration.
“In his speech on 20 August, Purbaya highlighted the importance of equitable development for social justice and recalled the economic thinking of Prabowo’s father, Soemitro Djojohadikoesoemo,” Reuters wrote.
Purbaya pledged to push Indonesia’s growth rate beyond six per cent, emphasising private sector participation alongside government action. “I will create economic growth of 6% to 7%,” he said.
Channel News Asia (CNA) also reported the reshuffle in an article titled “Indonesian Finance Minister Sri Mulyani Removed as Prabowo Reshuffles Cabinet Following Weeks of Protests”.
The Singaporean outlet noted Purbaya’s academic background, with a master’s and doctorate in economics from Purdue University, and his experience as chief executive of state-owned brokerage Danareksa Securities.
The domestic stock market reacted swiftly. On Monday (8 September), the Jakarta Composite Index (JCI) fell by 1.28 per cent to close at 7,766 points, a decline of 100.49 points from the previous session.
According to RTI Infokom, the trading value reached Rp20.13 trillion with 36.3 billion shares exchanged. At market close, 232 stocks rose, 451 declined, and 121 remained unchanged.
Market observers attributed the downturn to investor concerns following the announcement, particularly over the change in the Ministry of Finance and the Ministry of Cooperatives.
