By The Straits Times | Created at 2026-06-05 04:31:49 | Updated at 2026-06-07 08:56:34
2 days ago
JAKARTA - Indonesian Finance Minister Purbaya Yudhi Sadewa denied he is resigning from office, after rumours of his departure swept through slumping markets this week.
It’s not true, Purbaya told reporters late on June 4, Bloomberg Technoz reported. State Secretary Prasetyo Hadi also separately told reporters late on June 4 that Purbaya is not departing.
“If anything, now is the time for tighter coordination” between the Finance Ministry, Bank Indonesia, Financial Services Authority and Coordinating Ministry for Economic Affairs, Hadi said.
The rupiah and bonds were steady while stocks slid as much as 2 per cent in trading on June 5. The benchmark stock index is the worst performer in 2026 among more than 90 global gauges tracked by Bloomberg, and the rupiah this week weakened beyond the key psychological level of 18,000 per US dollar.
Talk of Purbaya’s possible departure spread fast on June 4 amid deepening concerns about the country’s economy and a graft probe involving President Prabowo Subianto’s US$15 billion (S$19 billion) free food programme.
Other sources of uncertainty include the government’s rollout of a new export control plan and a probe of the detention of two members of President Prabowo Subianto’s cabinet.
The rumour of Purbaya’s departure was exacerbated when a local news outlet accidentally published – and subsequently took down – a statement from 2013 about a finance minister change.
Purbaya became finance minister in September after Prabowo ousted investor-favourite Sri Mulyani Indrawati in the wake of cost-of-living protests. He vowed to turbocharge Indonesian economic growth, which accelerated to 5.6 per cent in the first quarter, though some economists are skeptical about the data.
His tenure has also seen him publicly rebuke a Citigroup economist for lacking a doctorate in February, while Moody’s Ratings and Fitch Ratings have both changed the outlook on the country’s credit score to negative. Other investor concerns include an ongoing MSCI review of the country’s investability, and the potential breach of fiscal deficit limits due to expensive plans like the free meals plan.
In an interview with Bloomberg News in April, the finance minister sought to offer assurances to investors worried about the Indonesian economy, where the subsidy bill has risen as a result of surging global energy prices. BLOOMBERG
