Indonesian President Prabowo Subianto today announced the dismissal of Finance Minister Sri Mulyani Indrawati without giving a reason. Purbaya Yudhi Sadewa, former president director of the Indonesia Deposit Insurance Corporation, has been appointed as her replacement.

Indrawati is an influential figure in Indonesia, having served as managing director of the World Bank and as finance minister under three Indonesian presidents.

Late last month, Indrawati's home was ransacked by protesters as Indonesia erupted in demonstrations against privileges for officials and members of parliament.

Former Indonesian Finance Minister Sri Mulyani Indrawati. Photo: Reuters

Former Indonesian Finance Minister Sri Mulyani Indrawati. Photo: Reuters

Bhima Yudhistira Adhinegara, executive director of the Center for Economic and Law Studies, said Indrawati's dismissal was not surprising, given Indonesia's recent economic situation.

"Calls for Indrawati's dismissal have long been made by many research institutes and social organizations who felt she was incapable of promoting a fair tax system," Adhinegara said.

President Subianto also reassigned Security Minister Budi Gunawan and Sports Minister Dito Ariotedjo, but did not give reasons.

Indonesia has been rocked by protests since late last month. Citizens and technology drivers marched in the streets in 25 provinces. Clashes and looting occurred in some areas, resulting in at least 10 deaths and the burning of several government buildings and public facilities.

Protesters demonstrated against low wages, high unemployment, and privileges for officials. These are the largest and most violent protests since the beginning of President Subianto's term.

Ngoc Anh (AFP)