Purbaya Removes Two Directorate Generals, Analyst: Signals Fiscal Direction Correction
The decision by Finance Minister Purbaya Yudhi Sadewa to remove two director generals is seen as having multilayered impacts on market perceptions and the direction of fiscal policy.
Senior analyst at the Institute for Development of Economics and Finance (ISEAI), Ronny P. Sasmita, views this step as not standing alone. He sees a broader policy context behind the decision.
“From the perspective of fiscal governance, the removal of two director generals by the Finance Minister is almost certainly not a standalone or personal decision. This step usually reflects tensions at the policy implementation level, whether due to unmet targets, differences in approach to maintaining fiscal stability, or even a signal that the Finance Minister wants to carry out ‘policy recalibration’ amid increasingly complex economic pressures,” Ronny told Kompas.com on Thursday (23/4/2026).
“So, changes at that level usually relate to the need for acceleration or correction of direction,” said Ronny.
He outlined three possible factors behind the decision. The first factor relates to performance. Unmet targets for revenue, expenditure, or financing could be a trigger.
The second factor concerns policy consolidation. The government needs to ensure all lines align with the fiscal strategy.
The third factor relates to risk management. Global volatility demands high discipline to maintain fiscal credibility.
Ronny assesses that the impact of this decision will be seen in two time horizons. Short-term impacts will emerge in market perceptions. Medium- to long-term impacts will depend on the direction of subsequent policies.
“So, this is not just about changing officials, but about whether the Ministry of Finance is strengthening its fiscal foundations or facing deeper internal pressures,” he said.
Previously, Purbaya removed the Director General of Economic and Fiscal Strategy, Febrio Nathan Kacaribu, and the Director General of Budget, Luky Alfirman. Their positions are now filled by acting officials.
The appointment of acting officials has been in effect since Tuesday afternoon (21/4/2026). This step was taken to keep the organisational wheels turning while awaiting permanent officials.
“Yes. They’ve been given Plh (Acting Officials) now,” Purbaya said when confirmed at the Coordinating Ministry for Economic Affairs office in Jakarta on Wednesday (22/4/2026).
Purbaya did not explain the reasons for the removals. He did not answer follow-up questions and proceeded directly to his official vehicle.