Story perspectives

Indonesia’s Cabinet Shake-Up Sparks Protests, Raises Economic Concerns

9/8/2025

Summary

Story summary

Indonesia's President Prabowo Subianto reshuffled his Cabinet, replacing key economic and security ministers amid protests.
Finance Minister Sri Mulyani Indrawati was replaced by economist Purbaya Yudhi Sadewa.
Protests erupted over lawmakers' housing allowances of 50 million rupiah, nearly ten times the minimum wage.
The National Commission on Human Rights reported ten protest-related deaths.
Analysts worry about fiscal management and economic stability after Mulyani's exit.

History

Historical Context

The fall of President Suharto in 1998 marked a pivotal shift in Indonesia, leading to political reforms amid the Asian Financial Crisis, which necessitated a $43 billion bailout from the International Monetary Fund. Today, President Prabowo Subianto's cabinet reshuffle reflects ongoing instability, as protests over lawmakers' allowances echo historical discontent with corruption, highlighted by a recent report of ten protest-related deaths.

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Story summary

Indonesia's President Prabowo Subianto reshuffled his Cabinet, replacing key economic and security ministers amid protests.
Finance Minister Sri Mulyani Indrawati was replaced by economist Purbaya Yudhi Sadewa.
Protests erupted over lawmakers' housing allowances of 50 million rupiah, nearly ten times the minimum wage.
The National Commission on Human Rights reported ten protest-related deaths.
Analysts worry about fiscal management and economic stability after Mulyani's exit.

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