The main stock index erased earlier gains to trade 1.3 per cent down. The rupiah was little changed after the announcement, having been up around 0.7 per cent against the dollar during the day.
Her removal follows two weeks of nationwide unrest and demands by protesters for a fairer tax system.
During some of the protests in late August, looters broke into Sri Mulyani’s home in South Tangerang, a city neighbouring the capital Jakarta.
Her neighbour said the house was ransacked in two waves. The first involving dozens of motorcycles ridden by two to three people each and the second involving about 150 people. A television, sound system, living room decorations and clothes were among the items taken.
“Mulyani’s departure, though not unexpected after recent unrest, marks the end of an era of fiscal credibility,” said Mohit Mirpuri, fund manager, SGMC Capital.
“She’s left strong foundations, and with experienced technocrats/candidates (like Suahasil Nazara or Chatib Basri) in the wings, I expect Indonesia will regroup quickly.”
Read the full article here
