Indonesian president nominates acting central bank governor

Indonesia's President Prabowo Subianto has nominated acting Central Bank Governor Destry Damayanti as his sole candidate to succeed her in the role. The nomination was made following the abrupt resignation of Perry Warjiyo last month. Prasetyo Hadi, a presidential spokesman, confirmed that "there is only one name, it is Destry Damayanti," when asked about the development.

The final say on the new governor will be with Parliament, currently on recess. Destry, a 62-year-old economist, had been serving as deputy governor of Bank Indonesia since 2019. Perry's unexpected departure in late July marked the second major loss of a key economic policymaker since President Prabowo Subianto assumed office in October 2024.

The governor's resignation sparked speculation that he may have been under pressure to better support the government's pro-growth agenda. Analysts noted that the choice of Perry's replacement would be closely monitored for signs of political interference. Deputy Governor Thomas Djiwandono, Prabowo's nephew, was also considered as a potential candidate.

The Central Bank of Indonesia (CBN) recently shelved a N700 billion Treasury bills auction due to a liquidity squeeze. Furthermore, the PFIPC scandal has led to accusations from ADC and APGA chieftains against the Independent Corruption Probe Agency (ICPC) over its report. Prabowo's plan to evaluate Bank Indonesia's performance and influence economic growth was further complicated by a bill passed in July that granted Parliament the responsibility for economic growth.

The rupiah has suffered, sliding seven percent since the Middle East conflict erupted in February, becoming Asia's worst-performing currency according to Bloomberg News. At the last policy meeting led by Perry in late July, the bank maintained its benchmark interest rate at 5.75 percent after a cumulative 100-point increase this year, a move that commentators believe might have frustrated the government.