Indonesia Removes Finance Minister After Clash With Prabowo-Aligned Customs Chief

JAKARTA — Indonesian President Prabowo Subianto has dismissed Finance Minister Purbaya Yudhi Sadewa after a dispute with customs and excise chief Djaka Budhi Utama, three government sources told Reuters.

Reshuffle Sparks High-Level Clash

The conflict centred on a sweeping personnel reshuffle at the Finance Ministry that affected hundreds of positions in the tax and customs directorates. Djaka and Tax Director General Bimo Wijayanto objected to the rotations, saying they had not approved the changes. According to the sources, Djaka took his complaint directly to President Prabowo, prompting the president to remove Purbaya.

Access and Influence

Both Djaka and Bimo report to the finance minister but were reportedly appointed to their roles by Prabowo. One source described Djaka — who served with Prabowo in the military's special forces — as having unusually direct access to the president. Media reports say Djaka was found guilty in a military court in the 1990s over the kidnapping and forced disappearance of rights activists; Reuters could not independently verify those historical allegations.

Sequence Of Events

The dispute reached a peak at an inauguration ceremony last Thursday where hundreds of senior and middle-management officials were sworn in. Purbaya defended the reshuffle at the event, saying it was based on professional assessments and consultations. Two sources said Djaka formally objected on Friday and reported the matter to Prabowo before the president left for the BRICS summit in India. Prabowo returned to Jakarta early Monday, and Purbaya was informed of his dismissal by a call from the presidential spokesperson while he was answering lawmakers' questions at a budget hearing.

FILE PHOTO: Indonesia's newly appointed Finance Minister Suahasil Nazara reacts as outgoing Finance Minister Purbaya Yudhi Sadewa signs a document, during a handover ceremony at the Finance Ministry in Jakarta, Indonesia, September 15, 2026. REUTERS/Garry Lotulung/File Photo

New Leadership, Pending Review

Suahasil Nazara, a veteran technocrat promoted from deputy finance minister, has replaced Purbaya. Suahasil told reporters he would review recent appointments; in a WhatsApp message seen by Reuters he said he had advised postponing the inauguration until the tax and customs chiefs' concerns were addressed. The customs office said it was awaiting direction from the new finance minister.

Broader Frictions

Sources also said Purbaya had prior disputes with other senior officials. He reportedly clashed with then-Bank Indonesia governor Perry Warjiyo over placing government cash in state-owned banks to support lending, and with Danantara chief Rosan Roeslani after Purbaya said the sovereign wealth fund would transfer significant profits to help meet the fiscal-deficit target — a claim Rosan later denied.

Political Implications

Analysts say the episode illustrates President Prabowo's governing style: he often places weight on input from trusted allies and former military colleagues, which can sometimes override technocratic decision-making. Markets and analysts welcomed the replacement as likely to restore some confidence in Indonesia's $1.5 trillion economy after months of uncertain policy signals.

Note: Reuters reported these developments citing government sources. Several parties, including Bimo and the presidential office, did not respond to requests for comment; Djaka denied there was a conflict preceding the sacking.

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