Indonesia's new 'cowboy style' finance minister bets big on growth

On his first day in office, he declares that 8 per cent growth is 'not impossible'

- Arlina Arshad

JAKARTA - Indonesia's new finance minister, Dr Purbaya Yudhi Sadewa, has made a stormy start in office.

The 61-year-old, who describes his communication as "cowboy style", provoked backlash just hours after his Sept 8 swearing-in by dismissing protesters angry over lawmakers' allowances as a "small segment" of society who are "unhappy with their lives".

The remarks drew swift criticism. Dr Purbaya apologized and pledged a more measured tone, but courted further controversy after describing himself soon after as a "menteri kagetan" — loosely translated as "surprise minister", referring to someone suddenly thrust into office and considered unprepared.

The turbulence did not end there. His 19-year-old son sparked uproar after claiming online that Dr Purbaya's predecessor, Dr Sri Mulyani Indrawati, is an "American CIA agent". Dr Purbaya brushed it off as youthful ignorance and barred his son from using Instagram. The young man later clarified that it had been a joke intended for a private audience, and said he was shocked that the post went viral.

Dr Purbaya succeeded Dr Sri Mulyani, a former World Bank managing director who had served under three presidents and was lauded for her fiscal prudence. He was one of two contenders for the post. The other was Mr Rosan Roeslani, chief executive of Indonesia's newly established sovereign wealth fund, Danantara.

Dr Sri Mulyani preferred to keep large balances at the central bank to prevent overspending, while Indonesian President Prabowo Subianto pushed for more funds for his flagship programmes. These included the free nutritious meal scheme in schools, which has a reported budget of 171 trillion rupiah (S$13.4 billion) in 2025 and is estimated to be rising to 450 trillion rupiah per year when fully implemented.

The Jakarta stock exchange dipped on news of her removal in a Cabinet reshuffle, reflecting investor unease over a potential policy shift, before rebounding a day later.