Indonesian President Nominates Acting Head to Lead Central Bank

Indonesia has nominated acting central bank governor Destry Damayanti as the sole candidate to lead Bank Indonesia following the unexpected resignation of Perry Warjiyo last month, the government said Monday.

Presidential spokesman Prasetyo Hadi confirmed that President Prabowo Subianto had put forward only Destry’s name for the position. Parliament, which is currently in recess, will have the final say on the appointment, a decision expected to be closely monitored by financial markets.

The 62-year-old economist has been serving as acting governor since Warjiyo’s resignation. She previously served as a deputy governor of Bank Indonesia from 2019.

Warjiyo’s abrupt departure in late July marked the second resignation of a senior economic policymaker since President Prabowo took office in October 2024. The resignation fueled speculation that the governor had faced pressure to provide greater support for the government’s economic growth agenda.

Analysts are expected to closely examine Destry’s nomination for indications of the government’s approach to the independence of Bank Indonesia. Prabowo’s nephew and fellow deputy governor, Thomas Djiwandono, had previously been mentioned as a possible candidate for the position.

Concerns over the central bank’s independence have increased following a bill passed in July that allows parliament to evaluate Bank Indonesia’s performance and assigns the institution a role in supporting economic growth, one of the government’s key priorities.

Warjiyo’s resignation came amid difficult economic conditions, with Indonesia’s rupiah weakening sharply and the stock market facing pressure. The currency has lost around 7% since the Middle East conflict escalated in February, making it one of Asia’s worst-performing currencies, according to Bloomberg.

Bank Indonesia’s board of governors, led by the governor and supported by several deputies, is responsible for monetary policy and interest-rate decisions.

At its final policy meeting under Warjiyo in late July, the central bank kept its benchmark interest rate unchanged at 5.75%, following cumulative rate increases of 100 basis points earlier in the year. The decision was seen by some analysts as potentially frustrating the government, which has been pushing for stronger economic growth.