Jakarta. President Prabowo Subianto has dismissed Deputy Minister of Immigration and Correctional Affairs Silmy Karim after anti-graft investigators named him a suspect in an alleged corruption case, while the Presidential Palace on Thursday dismissed rumors that Finance Minister Purbaya Yudhi Sadewa was set to leave the cabinet.

State Secretary Prasetyo Hadi said Prabowo had signed a presidential decree formally removing Silmy from office following the Corruption Eradication Commission's (KPK) decision to name him a suspect in a case involving alleged extortion and gratuities linked to the processing of residence permits for foreign nationals.

"We would like to inform you that this afternoon the president signed the dismissal letter," Prasetyo told reporters at the Presidential Palace in Jakarta.

Prasetyo said the government regretted the corruption allegations but would respect the ongoing legal process and support law enforcement efforts to combat graft. The Palace has not yet decided on Silmy's replacement, although Prasetyo said the vacancy would not disrupt the ministry's operations.

Silmy was named a KPK suspect on Thursday after nearly 10 hours of questioning. Investigators allege he was involved in an extortion scheme related to residence permits for foreign nationals. Several other immigration officials, including former acting Director General of Immigration Saffar Muhammad Godam, have also been named suspects.

Prasetyo also denied speculation that Purbaya was preparing to resign as part of a cabinet reshuffle.

"There is no reshuffle. There are no such plans at the moment," he said.

Rumors surrounding Purbaya's future had circulated amid concerns over Indonesia's economic outlook, the rupiah's recent slide beyond the Rp 18,000-per-dollar mark, and the government's fiscal position.

Prasetyo said Purbaya had personally denied the reports and stressed that the government's priority was to strengthen coordination among the Finance Ministry, Bank Indonesia, the Financial Services Authority (OJK), and the Coordinating Ministry for Economic Affairs to protect economic stability.

The Palace's denial came as Purbaya sought to reassure investors and global credit assessors about Indonesia's fiscal discipline. Speaking after a meeting with ratings agency Standard & Poor's (S&P), the finance minister said the government remained committed to keeping the state budget deficit below the legal ceiling of 3% of gross domestic product.

"We explained to them how we plan to achieve that this year and next, along with the broader improvements in our economy," Purbaya told reporters at the parliament complex.

According to Purbaya, the government used the meeting to explain Indonesia's economic fundamentals and fiscal strategy as S&P gathered information for its assessment. He highlighted stronger economic growth and improving state revenues, adding that tax collections in May rose 22.1% from a year earlier.

"That is one encouraging development that we conveyed to them," he said.

The discussions come at a sensitive time for Indonesia. In April, S&P warned that the conflict in the Middle East and higher global energy prices could weaken the country's credit profile by increasing fuel subsidy costs and putting pressure on the fiscal deficit.

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