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Purbaya was sworn in as the new Minister of Finance replacing Sri Mulyani on 8 September 2025.[4] The announcement was made by Minister of the State SecretariatPrasetyo Hadi.[5] Purbaya said that he was surprised with the sudden appointment and for a brief moment he thought he was being ‘pranked’.[6] His appointment was praised by former president Joko Widodo, who knows him personally and said that Purbaya came from a different school of economic thought from Sri Mulyani.[7]
Right after his appointment, Purbaya made a statement about the 17+8 Demands which generated controversy.[8][9]Achmad Nur Hidayat, an economist and public policy expert from UPN Veteran Jakarta criticize Purbaya's attitude of being too overconfident and underestimating the people's demand.[10] Hidayat states that his statement is a dangerous signal to market stability and oversimplifying a complex problem.[11] His statement on the protests was even condemned by the public and University of Indonesia Student Executive Board demanded for his removal from office.[12]
In an economic perspective, IDX Composite dropped by 1,28% when Purbaya was announced to be the minister replacing Sri Mulyani amidst of riots and other major cabinet reshuffles.[13][14] Purbaya reacted to the sudden drop, stating he has been in the financial industry for more than 15 years and the drop is caused by an economic slowdown.[15] He then promised to fix the economy.[15]
Tenure
Purbaya then had a plenary meeting with the Eleventh Commission of the House of Representatives of Indonesia on 10 September 2025 to discuss about the state budget and his ministerial programs.[16] In his plenary meeting, Purbaya opened his remarks by comparing the meeting atmosphere to the previous meetings as the Head of the Indonesia Deposit Insurance Corporation (LPS) where he was able to talk "like a cowboy" compared to being a Finance Minister as he had to refine his way to explain to the member's laughter. One member quipped that he may be a cowboy as long as he's able to get things done.[17] Purbaya handled questions and criticism from members regarding on the state budget and his overconfidence of reaching a 6-7% GDP growth, even regarding to non-taxation revenue,[18] only to then rebuke members that "You have meetings with the finance minister (Mulyani) for few hundred days in a year, why haven't you asked that? And when I came here, all the sudden, wow, everything became very long".[18] When asked by PDI-P about paying the national debt of Rp.1,300 trillion, Purbaya confidently answered that "Even 3,000 trillion rupiah can be embezzled, but how can it not be used to pay off a debt of 1,300 trillion rupiah?".[19]
Not long a day after his appointment, Sadewa generated a lot of public controversy through his comments, his background, and his son's reaction of his appointment.[23]
On his inauguration day, Purbaya reacted to the 17+8 Demands that was voiced by the public, stating that the 17+8 demands are made from a minority of people that had not enough in their lives and states that the only solution is to create a more rapid economic growth. He then said that once the economy has grown by 7-8%, those demands will automatically vanish and people will find jobs and consume well instead of protesting.[8]
His statement was widely condemned by the protesters because his statement underestimated the public.[9] Facing backlash, Purbaya apologized to the public in a handover ceremony.[24] He then admitted that he is still "learning the ropes" and called himself a "shocked minister" with a "cowboy" mouth. He promised to be more careful in making statements of his own.[25]
Sadewa then further clarified what he meant by his statements made during his inauguration. Purbaya explained that his statement was based on economic concepts and his experience. He believes that accelerated economic growth will not necessarily lead to inflation because Indonesia's economic capacity still has room for growth.[26]
Son's reaction to appointment
Purbaya's younger son, Yudo Achilles Sadewa nonchalantly reacted to his father's appointment to the ministry of finance in which he wrote indirectly criticizing Sri Mulyani: "Thank God, my father has toppled a CIA agent that disguised as a minister" in his Instagram account.[27] Yudo's statement became viral and sparked a public debate. Not long after being viral, Yudo's account cannot be found in public.[28] Purbaya commented that he had warned his son on his social media conduct.[29]
Connections with Luhut
Purbaya's connection with Luhut Binsar Pandjaitan also became a controversy as members of the public speculated that Purbaya is in a league with Luhut's political ambitions. This is because Purbaya was recorded to occupy key positions in governmental projects under Luhut under the following:[23]
Deputy III for Strategic Issue Management at the Presidential Staff Office when Luhut served as Chief of Presidential Staff (2015).
Special Staff at the Coordinating Ministry for Political, Legal, and Security Affairs when Luhut led the ministry (2015).
Deputy for Coordination of Maritime Sovereignty and Energy at the Coordinating Ministry for Maritime Affairs and Investment (2018–2020) under Luhut.
Public and financial market reaction
Purbaya's initial statements as minister drew responses from various circles. Economist and Public Policy Expert from UPN Veteran Jakarta, Achmad Nur Hidayat, criticized Purbaya's attitude, which was deemed overconfident and dismissive of public criticism. According to him, the statements could send a dangerous signal to market stability and demonstrate an oversimplification of complex issues.[30]
From the financial market perspective, analysts projected that market participants would adopt a wait-and-see attitude toward the policies Purbaya would implement. Uncertainty resulting from the change in officials and the controversial statements had the potential to cause a short-term weakening of the Composite Stock Price Index (IHSG).[31]
Purbaya Effect
The Purbaya Effect is a term used by media and financial analysts to refer to market reactions and shifts in economic policy expectations after Purbaya Yudhi Sadewa took office as Indonesia's Minister of Finance in September 2025. This phenomenon is specifically linked to his fiscal policy approach, which is considered more aggressive and focused on growth stimulus through liquidity intervention, differing from the more conservative policies of his predecessor.[32]
The primary catalyst for the Purbaya Effect was his inaugural policy to relocate IDR 200 trillion from the Surplus Budget Balance (SAL) fund from Bank Indonesia to state-owned banks.[31] The stated objective was to increase banking liquidity to encourage credit disbursement. This approach was consistent with policy advice he had previously delivered during the COVID-19 pandemic.[33]
The initial manifestation of this effect was seen in mixed market reactions. On Purbaya's first day in office, the Composite Stock Price Index (IHSG) closed 1.78% weaker, which analysts attributed to investor uncertainty. Conversely, the Rupiah exchange rate showed relative stability during the same period.[34]
This policy triggered differing analyses among economists. Some parties viewed it as a positive stimulus that could lower lending rates and mobilize the real sector. Meanwhile, other parties voiced caution, arguing that the main issue might not be a lack of liquidity, but rather weak credit demand. Risks such as potential inflation and moral hazard in the banking sector were also highlighted points.[35]
Personal life
Purnama Yudhi Sadewa is married to Ida Yuliana, a beauty pageant who won the 1989 Wajah Femina beauty contest.[36] The couple has 2 sons, Yuda Purboyo Sunu and Yudo Achilles Sadewa.[37] His younger son Yudo is a cryptocurrency trader and content creator. Purbaya himself called Yudo "that trader kid" in a social media post on 2023.[38]
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