Indrawati’s reappointment signals fiscal continuity, but risks remain

Priyanka Kishore is the founder and chief economist of research firm Asia Decoded in Singapore.

After months of uncertainty, the re-appointment of Sri Mulyani Indrawati as finance minister provides much-needed reassurance about Indonesia's financial 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. As the government focuses on moving Indonesia up the manufacturing value chain and transitioning to a high-income economy, his participation sends a signal that those ambitions will not undermine the country's hard-won financial credibility.