Finance Minister Purges Top Officials: Inside the Shock Shake-up at Indonesia’s Treasury

JAKARTA, Investortrust.id — Indonesia’s Finance Minister, Purbaya Yudhi Sadewa, is cleaning house. In a move that has sent ripples through Jakarta’s financial circles, Purbaya confirmed the ousting of two of his most powerful lieutenants—the Director General of Budget, Luky Alfirman, and the Director General of Fiscal and Economic Strategy (SEF), Febrio Kacaribu. The purge aims to silence "internal noise" and restore institutional discipline at the heart of the nation’s Treasury.

For the international investment community, the Ministry of Finance (Kemenkeu) is the ultimate guardian of Indonesia’s fiscal credibility. A sudden vacuum in leadership at the Budget and Fiscal Strategy offices can signal internal discord or, worse, underlying fiscal stress. By framing this as a move to eliminate "misinformation" and insubordination, Purbaya is attempting to signal that he has a firm grip on the steering wheel as the administration navigates global economic headwinds.

Crushing "Internal Sabotage" and Fake News

The removals come on the heels of damaging rumors circulating about Indonesia’s cash reserves. Rumors had spread that the state budget (APBN) would run dry within three weeks and that remaining funds had plummeted to just Rp 120 trillion ($7.55 billion). Purbaya traced these leaks back to his own staff, citing a culture of internal resistance.

"There was information coming out that the Finance Minister is closed-off and cannot speak English, saying if possible don't let him meet investors because he could mess things up," Purbaya revealed during a media briefing on April 24, 2026. He emphasized that while differing opinions are welcome, active misinformation is not. "When there is misinformation like that, it lowers government credibility, so it must be tidied up," he added.

Maintaining the Fiscal Fortress

Purbaya was quick to dismiss any fears regarding the nation’s fiscal health. He maintained that the decision to swap leadership during global volatility was necessary to remove hurdles. "I can delete that 'noise' easily," the Minister stated confidently. He noted that the timing for the Budget DG swap was critical to ensure that the 2026 budget management does not stall.

To bridge the gap, the Minister has appointed Sudarto—a veteran expert in state expenditure—as the Acting Director General of Budget. Meanwhile, Ferry Ardianto takes over as the Acting Director General of SEF. These interim leaders are tasked with maintaining "business as usual" while the Minister prepares a shortlist of permanent replacements for President Prabowo Subianto’s review next month.

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Eyes on the May Appointments

The focus now shifts to May 2026, when Purbaya is expected to present three names to the President. This selection process will not only fill the Budget and SEF roles but will also address the Director General of Financial Sector Stability and Development (SPSK).

The market will be watching closely to see if the new appointees represent a shift toward more aggressive fiscal policies or a return to the conservative "stability-first" approach that has historically defined the Indonesian Treasury. For now, Febrio Kacaribu and Luky Alfirman have been told to "take a rest" as the Ministry looks for new placements for the former top officials.