Prabowo's Ministerial Purge Crystalizes Military's Ascendency
Key economic pillar of the Jokowi era also dumped
By: Ainur Rohmah
President Prabowo Subianto’s reshuffle of five members of his cabinet on Monday is being widely interpreted as a tactic by Prabowo to consolidate his authority, signaling his determination, after nearly a year in office, to build a government in his own image – unsettlingly, a military one.
All of the discarded figures served under former President Joko Widodo and remain within his circle, underscoring the widening distance between the two men although Sri Mulyani Indrawati, the internationally respected finance minister, had served under three presidents and was widely considered a stabilizing force for the country.
In turn, Defense Minister Sjafrie Sjamsoeddin, previously promoted to the honorary rank of General of the Indonesian National Armed Forces in August, is a close Prabowo confidant. Sjafrie, now Coordinating Minister for Political, Legal, and Security Affairs, means the ministry is controlled by the military, part of the ongoing power struggle between the military and the police.
State Secretary Prasetyo Hadi denied that the reshuffle was designed to sideline Jokowi’s allies, insisting instead that it reflected “the president’s prerogative to dismiss ministers,” and that the change in ministerial formation “has gone through a series of evaluations.” Still, on paper, the pattern was clear: every minister dismissed had ties to the previous administration and Jokowi’s inner circle.
The reshuffle strikes at the heart of Jokowi’s legacy. Budi Gunawan, a trusted confidant of the former president, had served as head of the State Intelligence Agency throughout Jokowi’s two terms, and his entry into Prabowo’s cabinet was widely seen as the result of Jokowi’s recommendation. Budi Arie, a loyalist who once led Projo, Jokowi’s powerful volunteer network had already come under scrutiny after subordinates were implicated in shielding online gambling platforms during his tenure as communications minister. With his position now weakened, experts say he may soon face questioning over the scandal.
Others ousted were also closely linked to Jokowi’s 2024 campaign. Dito Ariotedjo and Abdul Kadir Karding both played visible roles in mobilizing support for the former president. Karding, in particular, drew controversy recently when a photo of him playing dominoes with businessman Aziz Wellang, previously entangled in an illegal logging case, circulated widely on social media. Though Karding denied that the meeting was related to legal matters, the public suspicion reinforced perceptions of murky dealings behind the scenes.
Behind the Ouster of Sri Mulyani
Sri Mulyani Indrawati was the emblematic face of Jokowi’s economic team, a figure revered internationally for her credibility and steady hand in managing Indonesia’s fiscal policy. Her departure, analysts say, marks the end of an era. For a decade, she embodied continuity, caution, and the pursuit of fiscal discipline, values that reassured investors and lent Jakarta’s economic policies a sense of stability amid global turbulence.
However, the task of the finance minister in Prabowo’s administration is far from easy. Prabowo, who has staked much of his presidency on bold promises, has set an ambitious target of achieving 8 percent annual economic growth — a figure that far surpasses Indonesia’s average of 5 percent in recent years and that has been met with incredulity by international analysts. The World Bank forecasts GDP to grow around 4.9% to 5.3% with the outlook “subject to downside risks from global trade challenges and commodity price volatility.”
The challenge is magnified by Prabowo’s flagship initiatives, foremost among them the Free Nutritious Meals program, known by its Indonesian acronym, MBG. The program, estimated to cost trillions of rupiah annually, is intended to provide free meals for schoolchildren nationwide, a policy aimed at tackling malnutrition and bolstering human capital. Yet even as it garners popular support, the program has raised alarms among economists who warn that its financial burden could strain public finances for years to come.
Beyond MBG, the government must also finance the relocation of the national capital to Nusantara, maintain massive infrastructure projects, and sustain subsidies to shield consumers from inflation.
Amid these expensive undertakings, efficiency has become a catchword. The finance minister is expected to curb wasteful spending and redirect state resources toward programs deemed more productive. On the revenue side, tax collection is being aggressively pursued, as officials seek to expand the tax base and raise compliance in order to cover swelling expenditures.
For many Indonesians and businesses, however, this renewed emphasis on taxation risks being seen less as reform than as added pressure at a time of economic fragility.
The tension between fiscal ambition and social reality is becoming more evident. For ordinary Indonesians, daily life has grown more difficult. Prices of basic goods have continued to climb, wages have failed to keep pace, and job creation remains insufficient to absorb the influx of young workers. While government programs promise long-term benefits, they do little to immediately ease the anxieties of households living paycheck to paycheck. This disconnect between top-down economic targets and ground-level hardship may prove to be the administration’s greatest vulnerability.
In recent weeks, frustration among the public has spilled into the streets. Demonstrations, initially peaceful, quickly escalated into violent clashes. Crowds looted stores, vandalized public facilities, and even stormed the regional representative council building. In a shocking turn, several private residences of senior officials were targeted — including Sri Mulyani’s Jakarta home.
According to a source close to the government circle, Mulyani had quietly requested protection from Defense Minister Sjafri in anticipation of unrest. Yet only about 20 soldiers were deployed to guard her home — a number woefully inadequate against hundreds of demonstrators who had gathered outside. The scenes of chaos underscored a deeper reality: even the country’s most powerful figures were no longer insulated from the mounting anger of ordinary Indonesians.
Behind closed doors, a source says, Sri Mulyani had grown increasingly weary. She reportedly offered her resignation to the president twice. But Prabowo, wary of sending panic through financial markets, rejected her requests. On Monday, the minister of state secretary announced that Sri Mulyani had been formally removed from her post, causing the Jakarta Composite Index to plunge by 100.50 points, or 1.28 percent, closing at 7,766.85 on September 8. Analysts described the market drop as both a sign of investor unease and a warning of turbulence ahead.
Alleged Military Role in the Protests
As the demonstrations intensified at the end of August, a new layer of political intrigue emerged. According to an investigation by Tempo magazine, Sjafrie sought to use the unrest as a springboard for expanding military authority. In a closed-door meeting with Prabowo at his private residence in Hambalang, West Java, on August 29, Sjafrie proposed declaring a state of military emergency. Under such a decree, the armed forces would assume primary responsibility for quelling demonstrations — a move that many feared could tip Indonesia back toward the authoritarian reflexes of its past.
Tempo reported that Sjafrie didn’t come away empty-handed. Alongside his proposal, he presented a draft regulation in lieu of law that would grant sweeping powers to the military during the period of unrest. For some in the room, the document evoked memories of the Suharto era, when executive orders became instruments for curbing dissent.
Prabowo, visibly torn, reportedly consulted a retired general for advice. Yet opposition to Sjafrie’s plan mounted quickly. Senior ministers, party leaders, and state officials, worried about both domestic backlash and international condemnation, urged the president to resist. In the end, after long persuasion, Prabowo withheld his signature from the draft.