Indonesia parliament confirms new central bank chief

Indonesia's parliament has officially approved Destry Damayanti as the new Governor of Bank Indonesia (BI) following the unexpected resignation of Perry Warjiyo in July. Damayanti, a 62-year-old economist, was the sole candidate nominated by President Prabowo Subianto last month and has been serving as acting chief since Warjiyo's departure.

Prabowo's decision to nominate a successor for BI Governor was closely scrutinized due to concerns about potential political interference, with his nephew Thomas Djiwandono, a deputy governor, being rumored as a possible nominee. However, Damayanti emerged as the unanimous choice for the role.

Damayanti, who has been serving as a deputy governor at BI since 2019, pledged during her confirmation hearing before parliament last week to uphold the mission of making BI an institution that remains relevant and credible in maintaining stability while promoting sustainable economic growth.

Warjiyo's sudden resignation marked the second major economic policymaker to step down since Prabowo assumed office in October 2024, sparking speculation that he had been pressured to further the government's pro-growth agenda. This comes amidst challenging conditions for BI, including a declining rupiah and a sliding stock market.

The Bank's governing board, comprising a governor and several deputies, is responsible for monetary policy and setting interest rates. At their last policy meeting in July, the bank maintained borrowing costs at 5.75% following a 100-point increase this year, leaving them unchanged last month.