TEMPO.CO, Jakarta - Sri Mulyani Indrawati was relieved of her position as the Indonesian Minister of Finance by President Prabowo Subianto. In her place, Prabowo inaugurated Purbaya Yudhi Sadewa at the State Palace, Jakarta, on Monday, September 8, 2025.
State Secretary Minister Prasetyo Hadi claimed that Sri Mulyani did not resign or was dismissed. Prasetyo stated that there were many considerations for Prabowo to dismiss Sri Mulyani. "Based on his evaluation, he decided to make changes to the formation," said the Chair of the Organization, Cadre, and Membership Affairs of the Gerindra Party after the inauguration.
Before being replaced, Sri Mulyani was reportedly considering resigning several times. Specifically, after her house on Mandar Street, Bintaro, Tangerang Selatan, Banten, was ransacked by a group of people on Sunday, August 31, 2025. "The looters were like having a feast," said Sri Mulyani through her Instagram account on Wednesday, September 3, 2025.
Sri Mulyani became the target of public anger after making several statements that were considered controversial. The State Treasurer had mentioned the issue of low salaries for teachers and lecturers and equated taxes with alms.
Teacher and Lecturer Salaries
Sri Mulyani stated that the problem of low salaries for educators posed a challenge to the state's finances. This statement was made during the Indonesian Convention of Science, Technology, and Industry, which was broadcasted on the YouTube channel of the Bandung Institute of Technology (ITB) on Thursday, August 7, 2025.
The former state treasurer mentioned that the issue of low salaries for teachers and lecturers raised questions. "Should all of it come from state finances or is there participation from the public?" said Sri Mulyani. However, she did not explain the public participation she referred to.
Tax-Alms
A week later, on Wednesday, August 13, 2025, Sri Mulyani stated that paying taxes was similar to fulfilling the obligation to give a portion of wealth for alms and endowments in the teachings of Islam. According to her, there were rights of the less fortunate in every individual's wealth.
Sri Mulyani mentioned that paying taxes or giving a portion of wealth for alms and endowments meant upholding the principle of justice. "In every sustenance and wealth we obtain, there are the rights of others. The way the rights of others are given is through alms, endowments, and some through taxes," said Sri Mulyani in a virtual National Sharia Economics and Finance Discussion.
The former Managing Director of the World Bank explained that the proceeds from tax collection were also distributed to those in need, such as social assistance programs (bansos); micro, small, and medium enterprises (UMKM); the Family Hope Program (PKH); and healthcare services. "When talking about justice, we help the weak. It goes back to those in need," said Sri Mulyani.
Targeted Tax Revenue Increase
The government's plan to increase tax revenue targets amidst economic uncertainty has drawn attention. Tax revenue in the State Revenue and Expenditure Budget (APBN) 2026 is targeted to reach Rp2,357.7 trillion. The targeted tax revenue is a 13.5 percent increase from this year's tax outlook, which is predicted at Rp2,076.9 trillion.
Sri Mulyani stated that considerable efforts were needed to achieve this target. "For the tax revenue of Rp2,357.7 trillion, it means it has to grow by 13.5 percent. That's quite high and ambitious," said Sri Mulyani in a press conference on the 2026 State Budget Draft and financial notes at the headquarters of the Jakarta Directorate General of Taxes, on Friday, August 15, 2025.
The government's plan to increase tax revenue targets could impact the public and the business world, especially in terms of tax rate increases. Sri Mulyani ensured that there would be no new tax policy changes and rates to meet this target. Regulations still adhere to the Harmonization of Tax Laws (UU HPP). "So there are no new rates," she said.
Citizens voiced their opinions, stating that this tax increase would burden the people. Meanwhile, members of the DPR received substantial allowances, which ultimately sparked a wave of demonstrations at the end of last August.
Ilona Estherina contributed to the writing of this article.
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