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Prabowo Appoints Suahasil Nazara Finance Minister, Targets 3% Deficit

By Drooid · Sep 16, 2026, 2:28 PM UTC · How we work

Summary

Prabowo appoints Nazara

President Prabowo Subianto appointed Suahasil Nazara as Indonesia’s finance minister on September 14 2026.
Nazara replaces Purbaya Yudhi Sadewa, becoming the third finance minister within two years.
He pledged to keep the fiscal deficit below the 3 % of GDP ceiling.
The 2027 budget will spend over 4,000 trillion rupiah (US$230 billion), about one-fifth of GDP.
Rupiah rose to 17,680 per dollar after the reshuffle, within the 17,600-17,800 forecast.

Summary

Purbaya learns dismissal

Former minister Purbaya learned of his dismissal while answering lawmakers about the 2027 budget plan.
The reshuffle transferred 350 mid-level officials and 50 senior staff, prompting friction with customs chief Djaka Budhi Utama.
Djaka Budhi Utama directly appealed to President Prabowo over the rotations, citing his prior kidnapping conviction.
Analysts note President Prabowo’s cabinet is filled with ex-military allies, raising merit-based governance concerns.

History

Historical Context

The 1997 Asian financial crisis, which devastated Indonesia’s economy, prompted a $43 billion IMF rescue package in 1998 and forced structural reforms. Bank Indonesia reported the fiscal deficit surged to 6 % of GDP in 1998, while President Suharto’s administration cut subsidies by 30 %. Today, President Prabowo Subianto appointed Suahasil Nazara to keep the 2027 deficit under 3 % of GDP while managing a 4,000 trillion-rupiah budget, echoing past austerity pressures. These historical reforms entrenched fiscal discipline and revealed enduring military influence in governance, suggesting that current cabinet reshuffles may similarly reshape Indonesia’s economic trajectory.

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Prabowo appoints Nazara

President Prabowo Subianto appointed Suahasil Nazara as Indonesia’s finance minister on September 14 2026.
Nazara replaces Purbaya Yudhi Sadewa, becoming the third finance minister within two years.
He pledged to keep the fiscal deficit below the 3 % of GDP ceiling.
The 2027 budget will spend over 4,000 trillion rupiah (US$230 billion), about one-fifth of GDP.
Rupiah rose to 17,680 per dollar after the reshuffle, within the 17,600-17,800 forecast.

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