JAKARTA – In a significant and sudden development for Indonesia’s economic landscape, Purbaya Yudhi Sadewa has been appointed as the new Finance Minister by President Prabowo Subianto, taking over from the highly respected Sri Mulyani Indrawati. This unexpected leadership transition quickly sent ripples through the market, with the Jakarta Composite Index (IHSG) registering a notable decline, reflecting immediate investor reactions to the change.
Purbaya, who has served as the Chairman of the Deposit Insurance Corporation (LPS) since 2020, admitted that his appointment came as a surprise. He revealed he had not had the opportunity to meet his predecessor, Sri Mulyani, prior to the announcement. Consequently, immediately after leaving the Presidential Palace in Jakarta, he arranged a meeting with the former Finance Minister, seeking her valuable insights and guidance for his new, critical role. He acknowledged that the market’s initial reaction, specifically the dip in the Jakarta Composite Index (IHSG) at the close of trading on Monday, September 8, 2025, likely stemmed from this sudden change in the finance ministry’s leadership.
Addressing concerns over the falling stock market, Purbaya offered a reassuring perspective. Speaking to Republika.co.id, he stated, “If the IHSG drops, it might typically be due to fear, but I have extensive experience in the stock market.” This statement underscored his deep familiarity with market dynamics, allowing him to maintain an optimistic outlook. He expressed strong confidence that the market would rebound and regain strength within the next two weeks, indicating his belief in the underlying resilience of the Indonesian economy.
Beyond the leadership change, Purbaya also attributed the recent decline in the IHSG to the impact of demonstrations that had occurred over the preceding days. Despite these multiple pressures, he articulated a firm conviction in his ability to steer the Jakarta Composite Index back onto a positive trajectory once he fully assumes his responsibilities at the Ministry of Finance. His determination signals a focused approach to stabilize and invigorate investor confidence.
President Prabowo Subianto formally inaugurated Purbaya Yudhi Sadewa, along with four other ministers, at the State Palace on Monday afternoon WIB. The transition of the finance ministry from Sri Mulyani to Purbaya indeed prompted a negative market response, with the Jakarta Composite Index (IHSG) closing down by 100.50 points, a 1.28 percent decrease, settling at 7,766.85. This detailed market movement reflects the immediate, albeit expected, volatility following such a high-profile cabinet reshuffle.
Summary
Purbaya Yudhi Sadewa has been appointed Indonesia’s new Finance Minister by President Prabowo Subianto, replacing Sri Mulyani Indrawati. This unexpected leadership transition immediately impacted the market, causing the Jakarta Composite Index (IHSG) to drop by 1.28% to 7,766.85 points. Purbaya acknowledged that this market downturn was primarily due to his sudden appointment and recent demonstrations.
Despite the initial volatility, Minister Purbaya expressed strong confidence in a swift market recovery. Drawing on his extensive stock market experience, he assured that the IHSG would rebound within two weeks. He conveyed his determination to stabilize investor confidence and guide the index back to a positive trend.