Indonesia denies finance chief Purbaya to go as markets slump

Indonesian Finance Minister Purbaya Yudhi Sadewa has denied reports of his resignation, which circulated amid a significant slump in the country's markets this week. "It's not true," Purbaya told reporters on June 4, as reported by Bloomberg Technoz. State Secretary Prasetyo Hadi separately confirmed that Purbaya is not departing from his post.

Hadi stressed the importance of "tighter coordination" between the Finance Ministry, Bank Indonesia, the Financial Services Authority, and the Coordinating Ministry for Economic Affairs during this period. Despite these assurances, the rupiah remained steady while stocks slid as much as 2 percent on June 5. The benchmark stock index has become the worst performer among over 90 global gauges tracked by Bloomberg in 2026, and the rupiah weakened beyond the crucial 18,000 per US dollar level this week.

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It’s not true

Speculation about Purbaya's potential departure intensified on June 4, fueled by deepening concerns about Indonesia's economy and an ongoing graft probe linked to President Prabowo Subianto's US$15 billion free food program. Additional uncertainties stem from the government's new export control plan and an investigation into the detention of two members of President Prabowo's cabinet.

The rumor was further amplified when a local news outlet mistakenly published and then retracted a 2013 statement concerning a finance minister change. Purbaya assumed the finance minister role in September, succeeding Sri Mulyani Indrawati. He had pledged to boost Indonesia's economic growth, which reached 5.6 percent in the first quarter, although some economists express skepticism about the figures. His tenure has also been marked by public criticism of a Citigroup economist and negative outlook changes on the country's credit score by Moody's Ratings and Fitch Ratings.

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If anything, now is the time for tighter coordination