Indonesia's new finance minister faces an uphill battle on fiscal credibility

Finance Minister Suahasil Nazara delivers remarks after being sworn in as Finance Minister at the Ministry of Finance in Jakarta, on September 14, 2026. Faisal Ramadhan | Nurphoto | Getty ImagesIndonesia just got its third third finance minister in two years, putting the spotlight on concerns plaguing Southeast Asia's largest economy, with analysts flagging the need for fiscal prudence and a shift away from "interventionist" policy.President Prabowo Subianto fired Finance Minister Purbaya Yudhi Sadewa on Monday and replaced him with his deputy Suahasil Nazara.The reshuffle comes weeks after Bank Indonesia Governor Perry Warjiyo abruptly resigned, intensifying scrutiny over how much control Prabowo now wields over fiscal and monetary policy. For investors, elevating a known technocrat could restore confidence, after a combative year under Purbaya that saw credit-rating outlooks cut and the currency slide to historic lows this year. Nazara, sworn in hours after Purbaya's dismissal, spent seven years as deputy finance minister and led the ministry's fiscal policy agency from 2015 to 2019. "He is a known technocrat with deep Finance Ministry experience and strong links to the Sri Mulya...