JAKARTA, Sept 14 — Indonesia tapped Deputy Finance Minister Suahasil Nazara as the country’s new finance chief on Monday in a move that analysts said could signal policy continuity.

President Prabowo Subianto issued a decree for 55-year-old economist Suahasil to replace his boss Purbaya Yudhi Sadewa, but did not give a reason for the reshuffle.

Suahasil, who took the oath of office in Jakarta on Monday, said he was mandated by the president to maintain fiscal credibility.

“The president’s specific directive is to safeguard the state finances, meaning maintaining its health and credibility,” he told reporters.“The state budget, as part of the state finance, should be capable of implementing the government’s priority programme.”

Outgoing finance chief Purbaya was appointed just over a year ago, following deadly anti-government protests across the country.

Suahasil, who became deputy finance minister in 2019, served under both Purbaya and his predecessor Sri Mulyani.

“If there is a message that can be read by the market from Suahasil’s appointment, I think it’s continuity and institutional credibility,” said Bank Danamon Indonesia economist Irman Faiz.

Suahasil will face the challenge of balancing Prabowo’s ambitious growth agenda while also keeping Indonesia’s fiscal deficit in check, Irman said.

“The government has increasingly ambitious growth targets and various priority programs that need substantial funding, but at the same time, the fiscal space is not unlimited,” Irman added.

Prabowo has set an economic growth target of eight per cent by 2029, powered by a boost in public spending.

Indonesia’s government is bound by law to keep the fiscal deficit within three per cent of GDP, and concerns over the deficit prompted market routs this year amid economic stresses brought by the Middle East war.

South east Asia’s largest economy grew 5.3 per cent in the second quarter, according to official data. — AFP