Indrawati's reappointment signals fiscal continuity, but risks remain

Returning Indonesian finance minister is known for pushing through politically challenging decisions

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Indonesian Finance Minister Sri Mulyani Indrawati speaks to media during the ASEAN Finance Ministers and Central Bank Governors meeting in Bali, Indonesia, March 2023. © AP

Priyanka Kishore is the founder and principal economist at research company Asia Decoded in Singapore.

After months of uncertainty, Sri Mulyani Indrawati's reappointment as finance minister offers much-needed reassurance on Indonesia's fiscal and economic outlook. Since her first appointment in 2005, Indrawati has become synonymous with reforms and fiscal prudence in the eyes of investors and analysts alike. At a time when the government is focused on moving Indonesia up the manufacturing value chain and transitioning it to a high-income economy, her presence sends a signal that these ambitions won't compromise the country's hard-earned fiscal credibility.

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