Analysis: Purbaya’s contentious tenure ends in internal clash

President Prabowo Subianto recently dismissed Finance Minister Purbaya Yudhi Sadewa after less than a year in office, marking a second finance minister replacement for the President in under two years. Former Deputy Finance Minister Suahasil Nazara now holds the position, becoming the third individual to serve in this role since Prabowo assumed presidency.

This abrupt change came after months of contentious reforms and fiscal policies that led to conflicts between Purbaya and officials within the Finance Ministry as well as other institutions. On September 10, Purbaya carried out a significant personnel reshuffle, affecting around 400 officials, mostly from the Directorate General of Taxes and the Directorate General of Customs and Excise, with resistance from both directorates.

The dispute escalated further after Customs and Excise Director General Djaka Budhi Utama and Tax Director General Bimo Wijayanto, both appointed under previous finance minister Sri Mulyani Indrawati, opposed the changes. Both had previously served with Prabowo in the military, with Djaka being a retired three-star Army general and Bimo an alumnus of Taruna Nusantara, an influential alumni network in the current administration.

Reports suggest the dispute with Djaka ultimately led to Purbaya's removal, following a meeting between the two on September 11, shortly after Prabowo traveled to India. Three days later, on September 14, Prabowo dismissed Purbaya and appointed Suahasil as his replacement. Recently, Purbaya's plan to transfer Rp 120 trillion from Danantara's profits to the state for budget financing sparked controversy, as Danantara claimed no such plan existed.

Despite objections from Danantara, Purbaya maintained the funds would be recorded as non-tax state revenue (PNBP), leading to a public dispute with the institution managing the government's state-owned assets.