President Prabowo Subianto announced a Cabinet reshuffle Monday, replacing key economic and security ministers after deadly protests erupted across Indonesia over lawmakers' perks.
Five ministers lost their jobs in the shake-up, including Finance Minister Sri Mulyani Indrawati and Coordinating Minister for Politics and Security Budi Gunawan. Subianto named economist Purbaya Yudhi Sadewa, the chairman of Indonesia's Deposit Insurance Corporation, to replace Sri Mulyani.
The cabinet changes come after violent demonstrations that left seven people dead and spread across the archipelago, pressuring the government amid rising public anger. The unrest followed reports that all 580 members of the House of Representatives receive a monthly housing allowance of 50 million rupiah (about $3,075), on top of their salaries. The allowance, introduced last year, is roughly 10 times the minimum wage in Jakarta and drew criticism as insensitive while many Indonesians face higher living costs, increased taxes and rising unemployment.
Sri Mulyani, a widely respected technocrat and former managing director of the World Bank, had been a prominent economic steward in previous administrations and was seen as a stabilizing figure by international investors. Budi Gunawan oversaw political and security coordination and held a central role as authorities confronted widespread street protests.
Subianto's office said Monday that the reshuffle was intended to restore public trust and to address governance issues raised by the demonstrations, but it did not immediately release a full roster of new appointees beyond the finance ministry. Details on who will succeed Budi Gunawan and the three other dismissed ministers were not disclosed in the initial announcement.
Indonesia, Southeast Asia's largest economy with more than 280 million people, has seen growing public frustration over economic inequality and the perceived gap between lawmakers' privileges and the economic strains faced by ordinary citizens. Analysts say the scandal over lawmakers' allowances exacerbated simmering discontent with the administration and with a parliament already criticized for being out of touch with everyday economic realities.
The government has said it will investigate the allowance payments and confront corruption and excesses, but specific measures and timelines have not been made public. It was unclear Monday how the cabinet changes would affect economic policy, investor confidence or the handling of civil unrest in the coming days.
Authorities have not provided an updated count of injuries from the protests, and investigations into the circumstances surrounding the deaths were ongoing. The reshuffle represents the most significant personnel change in President Prabowo's administration since he took office and signals an immediate response to a surge of public anger over perceived official excesses.