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March 17, 2025 | 06:42 pm
TEMPO.CO, Jakarta - Deni Friawan, a researcher at the Department of Economics at the Centre for Strategic and International Studies (CSIS), stated that rumors of Finance Minister Sri Mulyani Indrawati’s resignation from the Red and White Cabinet could trigger market uncertainty.
Although the cabinet reshuffle remains speculation, Deni emphasized that the government should not let the issue linger, as prolonged uncertainty could impact market stability.
“The market views it simply—this issue shouldn’t be left unresolved for too long, as it signals uncertainty,” Deni told Tempo on Monday, March 17, 2025.
He added that the ongoing speculation would only create confusion, prompting economic players to adopt a wait-and-see approach while assessing the right timing for action.
"People will look forward to who the replacement will be, whether it will be for the better or worse. That's uncertainty. And in the market, it is very sensitive, and for the economy, it is also very sensitive," he said.
Deni believes the government must be firm. If indeed they will replace Sri Mulyani, then the reshuffle or cabinet shake-up must be done as soon as possible.
However, if not, President Prabowo Subianto must clearly state that he will not remove Sri Mulyani as the Finance Minister.
Market players and the overall economy, said Deni, cannot withstand uncertainty. This is because the reshuffle issue of the Finance Minister is related to who will make the policies and whether the policies will be different in the future.
"For example, the market's perception so far, Bu Sri Mulyani - regardless of her shortcomings - has the advantage of maintaining fiscal discipline, so macroeconomic stability is maintained," he said.
Although economic growth remained stagnant during Sri Mulyani's tenure, the discipline is considered to reflect integrity by the market. Deni said, the cabinet reshuffle is indeed the prerogative of Prabowo.
If the Head of State considers that the performance of his ministers in the first 100 days of government does not meet expectations, or he feels mismatch, then a cabinet reshuffle is a common thing.
"Although it is still early, it would be unfortunate if a replacement happens too soon," said Deni. "The key principle is that changes are fine if they serve a good purpose. However, in my view, the process should not drag on. The issue shouldn’t be left unresolved, and rumors shouldn’t spread unchecked, as that would only create further chaos," he added.
Meanwhile, Gerindra Party Secretary-General Ahmad Muzani said he could not yet confirm the issue. Muzani admitted he had not directly met with Prabowo to discuss the cabinet shake-up.
"I haven't met the President," said Muzani when met at the Parliament Complex, Senayan, on Friday afternoon, March 14, 2025.
Meanwhile, the Deputy Chairman of the Gerindra Party, Sufmi Dasco Ahmad, dismissed the issue concerning Finance Minister Sri Mulyani's resignation from her position. Based on what he heard, the meeting was only about breaking the fast together while discussing Indonesia's current economic conditions.
Dasco has also confirmed to the government that there are no plans for a reshuffle.
"I have also checked with the government, and there are no plans for a reshuffle, including from Mrs. Sri Mulyani," said Dasco after a working visit to Pasar Kramat Jati, Jakarta, on Friday, March 14, 2025.
Hammam Izzuddin contributed to the writing of this article.
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