Indonesia's Presidential Palace announced on the 14th that President Prabowo has dismissed Finance Minister Purbaya and appointed Deputy Finance Minister Suahasil as his successor. Suahasil, who has served as deputy finance minister since 2019, said after taking office that running a trustworthy state budget is his top priority, and indicated a policy of keeping the fiscal deficit below the legal ceiling of 3 percent of gross domestic product. He said he will continue working to manage a trustworthy state budget, earn public trust through dialogue with citizens, and support the government's priority programs through the budget. Purbaya, who took office last September, was dismissed after a little over a year, a tenure marked by a string of developments that shook the economy, including a sharp plunge in the rupiah and a widening fiscal deficit. His policy of quickly supplying liquidity to banks to spur growth also created friction with the central bank.
New finance minister Suahasil pledges to keep the fiscal deficit below the 3% legal ceiling, replacing Purbaya whose tenure saw a sharp rupiah plunge and widening deficit, supporting the rupiah.
