Indonesian Finance Minister Purbaya Yudhi Sadewa has denied reports suggesting he is resigning from office after rumours spread across financial markets amid economic concerns and a corruption probe involving a government free food programme (04/06).

“It’s not true,” Purbaya told reporters late on June 4, according to Bloomberg Technoz. State Secretary Prasetyo Hadi also confirmed that the finance minister is not leaving his post.

Hadi added that there is a need for closer coordination among key economic institutions, saying, “If anything, now is the time for tighter coordination” between the Finance Ministry, Bank Indonesia, Financial Services Authority, and Coordinating Ministry for Economic Affairs.

Markets React as Indonesian Stocks Fall and Rupiah Weakens

Indonesia’s financial markets showed weakness on June 5 despite official denials of political instability.

The rupiah and government bonds remained steady, but stocks fell by as much as 2 per cent during trading.

The benchmark index has become the worst performer in 2026 among more than 90 global indices tracked by Bloomberg.

The rupiah also weakened beyond the psychological level of 18,000 per US dollar this week, reflecting ongoing market pressure.

Economic and Political Uncertainty Drives Investor Concerns

Rumours about Purbaya’s possible departure spread on June 4 alongside growing concerns about Indonesia’s economic stability and a graft probe involving President Prabowo Subianto’s US$15 billion free food programme.

Uncertainty was further heightened by the rollout of a new export control plan and investigations involving two members of the cabinet.

Market confusion was also worsened after a local news outlet mistakenly published, then removed, a 2013 statement referring to a finance minister change.

Fiscal and Policy Risks Under Scrutiny in Indonesia

Investor concerns continue to rise over Indonesia’s fiscal direction under Finance Minister Purbaya Yudhi Sadewa.

He became finance minister in September after President Prabowo Subianto removed Sri Mulyani Indrawati following cost-of-living protests. Since then, he has pledged to accelerate economic growth, which reached 5.6 per cent in the first quarter.

However, some economists remain sceptical about the growth data. Meanwhile, Moody’s Ratings and Fitch Ratings have both revised Indonesia’s outlook to negative.

Further concerns include an ongoing MSCI review of Indonesia’s investability and fears that fiscal deficit limits may be breached due to costly government programmes such as the free meals initiative.

In an April interview with Bloomberg News, Purbaya also sought to reassure investors amid rising subsidy costs linked to global energy prices.

PHOTO: BLOOMBERG TECHNOZ/ANDREAN KRISTIANTO

This article was created with AI assistance.

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