Indonesia replaces finance minister to restore investor confidence
Indonesia's president dismissed finance minister Purbaya Yudhi Sadewa and appointed deputy Suahasil Nazara as finance minister, aiming to calm investor concerns after a year of policy turmoil. Suahasil pledged to run a credible state budget and keep the fiscal deficit below the 3% of GDP legal limit. the move follows a slump in the rupiah, a wider fiscal deficit, and downgrades of Indonesia's rating outlook by Fitch and Moody's amid contested spending choices like higher fuel subsidies and a costly school meals program. markets will watch whether the new minister restores policy and eases pressures on ratings and capital flows.
New finance minister vows to keep deficit below 3% of GDP
Context
Prabowo's government raised fuel subsidies and expanded costly programs. Markets saw the rupiah fall and credit outlooks turned negative. The new minister may try to steady the budget and calm investors.
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