Jakarta. Indonesian stocks tumbled on Monday after President Prabowo Subianto reshuffled his cabinet, removing Finance Minister Sri Mulyani Indrawati.

The Jakarta Composite Index (JCI) closed down 1.28 percent at 7,766.85, shedding 100.5 points. The rupiah, however, strengthened 0.75 percent to Rp 16,309 per US dollar.

Prabowo appointed Purbaya Yudhi Sadewa, the chief of Indonesia’s Deposit Insurance Agency (LPS), as finance minister for the remainder of his 2024–2029 term. While economists acknowledge his background as an academic and policy thinker, analysts worry about his limited hands-on experience in fiscal management.

“Purbaya is a capable economist, but he has no direct track record managing state finances,” said Fadhil Hasan, a senior economist at the Institute for Development of Economics and Finance (Indef). “He is not the best choice compared to Sri Mulyani, who enjoyed strong credibility both domestically and internationally.”

Sri Mulyani, a former World Bank managing director, was widely credited with maintaining fiscal discipline and investor confidence throughout two decades of political turbulence. Under her stewardship, Indonesia won praise from global markets for prudent budgeting, even as rising debt and populist spending under President Joko "Jokowi" Widodo’s second term drew scrutiny.

Sri Mulyani has long been subject to resignation rumors, which escalated following the nationwide protests over economic inequality earlier this month. The minister even had her house looted by an angry mob. Sri Mulyani had apologized on social media but did not quit immediately after the incident.

The cabinet reshuffle also affected other key posts. Chief Security Minister Budi Gunawan and Sports Minister Dito Ariotedjo were removed, though replacements have yet to be named. Prabowo also dismissed Cooperatives Minister Budi Arie Setiadi, a close ally of Jokowi, replacing him with his deputy Ferry Joko Juliantono. Lawmaker Mukhtarudin was tapped as migrant worker protection minister, while the president created a new Hajj and Umrah Ministry led by Mochamad Irfan Yusuf.