In a dramatic response to nationwide unrest, Indonesian President Prabowo Subianto has executed a sweeping cabinet reshuffle, dismissing five ministers including high-profile Finance Minister Sri Mulyani Indrawati. The political shake-up comes after weeks of violent protests triggered by public outrage over parliamentarians receiving lavish housing allowances equivalent to ten times Jakarta’s minimum wage, while citizens grapple with economic hardship. The demonstrations turned deadly, with human rights organizations reporting up to ten fatalities during clashes between security forces and protesters, including the tragic death of a young delivery driver that further galvanized public anger.
The cabinet overhaul represents a significant political recalibration, particularly with the removal of Finance Minister Indrawati, a respected international economist who previously held senior positions at the IMF and World Bank. Her replacement, 61-year-old economist Purbaya Yudhi Sadewa, brings continuity as someone who advised previous administrations and emphasizes growth-focused fiscal policies without systemic overhaul. The reshuffle also affected key positions in security, cooperatives, youth and sports, and migrant worker protection, signaling a comprehensive government restructuring amid the crisis.
The protests exposed deep public dissatisfaction with economic inequality and perceived government insensitivity, culminating in activists targeting politicians’ homes, including Indrawati’s residence. The unrest also reflected underlying concerns about military influence under President Prabowo, a former special forces commander with a controversial past. The situation only stabilized after the president revoked the controversial parliamentary benefits package, highlighting how economic grievances had ignited broader political tensions in the Southeast Asian nation of 285 million people.
This political crisis underscores the challenges facing Indonesia’s administration in balancing economic development with public accountability, particularly amid high youth unemployment that drives many into precarious work. The government’s response—combining cabinet changes, security measures, and policy reversals—demonstrates the delicate balance required to maintain stability while addressing fundamental public concerns about inequality and governance in one of the world’s largest democracies.
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