[JAKARTA] Indonesia’s new finance minister Purbaya Yudhi Sadewa vowed to maintain fiscal discipline even as he hinted he’d allow more state spending than his predecessor.
“I ask the Ministry of Finance to work with me so that fiscal policy can be a strong instrument to encourage economic growth,” he said at a ceremony with outgoing finance minister Sri Mulyani Indrawati in Jakarta on Tuesday (Sep 9). “We maintain the principle of fiscal discipline, so that the national budget remains healthy and credible to support the national agenda.”
President Prabowo Subianto abruptly replaced Indrawati as finance minister on Monday afternoon, a move that triggered declines in stocks and the rupiah over concerns it heralds a more free-spending approach in South-east Asia’s biggest economy. The change followed violent protests in recent weeks against his administration.
“No ivory is without cracks, no human being is perfect,” Indrawati said at the ceremony, apologising for any missteps. “In carrying out the mandate, there must be mistakes and oversights.”
Indrawati was greeted by scores of cheering finance ministry employees when she arrived with Purbaya in a public show of unity.
“Domestically, there are also challenges in terms of the government’s priority programmes to be guarded so that they run smoothly,” Purbaya said. “This mandate is not light because the world’s challenges are increasingly complex.” BLOOMBERG
