Indonesia Central Bank Governor Perry Warjiyo Steps Down in Surprise Move
- On Monday, State Secretary Prasetyo Hadi announced Bank Indonesia Governor Perry Warjiyo resigned for "personal reasons," with Senior Deputy Governor Destry Damayanti assuming the acting governor role.
- The departure follows pressure under President Prabowo Subianto to align monetary policy with government growth targets, including efforts to lift annual growth from around 5% to 8%.
- Bank Indonesia recently raised its benchmark interest rate to 5.75 percent during May and June, yet the rupiah remains near record lows, the worst performing currency in Asia this year.
- Damayanti stated the board of governors will ensure continuity of Bank Indonesia's duties, while The President will nominate a permanent successor subject to parliamentary approval under current law.
- "Warjiyo's resignation will likely be taken negatively by the market," said Angus Mackintosh, an Asean specialist at Aletheia Capital in Singapore, citing concerns about the bank's independence following Prabowo's earlier appointment of his nephew.
41 Articles
41 Articles
Perry Warjiyo, governor of the Central Bank of Indonesia since 2018, unexpectedly resigned from his post, the government reported on Monday, July 27. Warjiyo's second term was due to end in 2028. He cited personal reasons for his decision, but he may also have decided to step down due to Indonesia's economic difficulties in the wake of the war in the Middle East.
The resignation of Warjiyo, one of the most experienced central bankers in Asia, was announced at a press conference in which the 67-year-old economist did not take part. His place will be temporarily taken by Deputy Governor Destry Damayanti
It surprises Perry Warjiyo, raising doubts about the economic and currency holding and the independence of the Bank of Indonesia. The rudder passes to interim Destry Damayanti, long-term economist, called to lead a delicate transition
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