Finance Minister Sri Mulyani Lost Her Technocratic Touch, Tends to Follow Political Programs

JAKARTA – If President Prabowo Subianto reshuffles the Red and White Cabinet, Finance Minister Sri Mulyani is said to be among those who deserve to be removed.

Sri Mulyani's name has recently been the target of netizens' ire due to her controversial policies. Born on August 26, 1962, she became the focus of public attention for the policy of increasing VAT from 11 percent to 12 percent, although this was later withdrawn.

Recently, Sri Mulyani also drew criticism for equating taxes with the obligation to pay zakat and waqf (Islamic endowments) for Muslims, the majority religion in Indonesia. According to her, both have the same benefit: giving back to those in need.

"In every blessing and wealth you receive, there are other people's rights. These rights are given through zakat, waqf, and taxes, and these taxes are returned to those in need," Sri Mulyani said at the National Seminar on Sharia Economics and Finance on Wednesday (August 13, 2025).

Recently, Sri Mulyani also became a topic of discussion after questioning whether all teacher and lecturer costs should be covered by the state budget or could be covered through public participation. This statement gave rise to wild assumptions among the public, and Sri Mulyani was not spared from criticism.

Economist Bhima Yudhistira from the Center of Economic and Law Studies (CELIOS) believes that Finance Minister Sri Mulyani has lost her technocratic touch and is now tending to follow political agendas.

Following the Political Agenda

Sri Mulyani first served as Minister of Finance during the administration of President Susilo Bambang Yudhoyono on December 5, 2005, replacing Jusuf Anwar when the president announced a cabinet reshuffle. She was named the 23rd most powerful woman in the world by Forbes magazine.

In 2010, Sri Mulyani was appointed one of three Managing Directors of the World Bank.

Sri Mulyani was reappointed as Minister of Finance by President Joko Widodo on July 27, 2016, and she remains in the same position to this day.

Despite her impressive background, Bhima Yudhistira stated that Sri Mulyani currently has weaknesses in controlling the State Budget (APBN).

Rather than carrying out her technocratic role as state treasurer, Bhima believes Sri Mulyani is currently following the direction of President Prabowo Subianto too closely.

He cited the example of how Sri Mulyani continued to approve Prabowo's flagship megaproject, the free nutritious meals program (MBG), despite the significant budgetary costs, which remains controversial to this day.

"Her quality as a technocrat has declined because she complied with all of Mr. Prabowo's requests without implementing proper budget controls," Bhima asserted.

"Whereas she was once known as technocratic, now she is more pragmatic and political. The Minister of Finance's role in budget control is weak, and she even tends to follow political programs, such as the free nutritious meals program," he continued.

Furthermore, Bhima also highlighted Sri Mulyani's attitude towards managing the country's debt. Instead of encouraging debt renegotiation to ease the burden on the state budget, the Minister of Finance is seen as prioritizing maintaining a good image in the eyes of investors and international creditors.

"Mrs. Sri Mulyani sides more with creditors than with the tax burdened public. Her fiscal policy spectrum is very pragmatic," he said.

Ministers and Deputy Ministers Not in Accord

Previously, the issue of a cabinet reshuffle was widely discussed. Sri Mulyani's name was even mentioned among those to be replaced by President Prabowo, although those rumors have now faded.

After approximately 10 months of the Red and White Cabinet, Bhima Yudhistira assessed that several ministries were underperforming. And, if Prabowo were to reshuffle the cabinet for a second time, Bhima suggested that the entire team related to the economy be overhauled.

"The entire economic team is being replaced, starting with the Coordinating Minister for Economic Affairs, the Minister of Finance, the Minister of Industry, the Minister of Energy and Mineral Resources, and the Minister of Investment," Bhima said.

Minister of Energy and Mineral Resources Bahlil Lahadia is considered inconsistent with Prabowo's pronouncements on several occasions abroad, in which the president is committed to renewable energy, while domestically he still relies on fossil fuels.

Meanwhile, Investment Minister Rosan Roeslani should focus solely on managing Danantara due to its demanding workload. Furthermore, Bhima also highlighted the lack of cohesion between ministers and their deputy ministers, including Finance Minister Sri Mulyani, who has three deputies.

"So, it seems like they're not close, it seems like they have their own agendas, whether political or because of a perceived closeness to, for example, Prabowo," he explained.

Economically, Bhima emphasized that cohesion between ministers and deputy ministers, or between ministries and institutions, is fundamental to maintaining the investment climate.

"Investors shouldn't feel there's a bureaucratic divide between minister A and the others, because that's often the case, and it ultimately discourages them from investing," Bhima concluded.