Indonesia’s President, Prabowo Subianto, has nominated acting central bank governor Destry Damayanti as the sole candidate to become the institution’s substantive governor following the sudden resignation of Perry Warjiyo.
The nomination was confirmed on Monday by presidential spokesman Prasetyo Hadi, who said the government had settled on Destry as the only candidate for the position.
“There is only one name, it is Destry Damayanti,” Hadi told reporters in Jakarta.
The nomination will now be considered by Indonesia’s parliament, which is currently on recess and will have the final say on the appointment.
Destry, 62, is an economist who has served as a deputy governor of Bank Indonesia since 2019. She assumed the role of acting governor following Perry’s unexpected departure in late July.
Perry’s resignation marked the second departure of a senior economic policymaker since Prabowo assumed office in October 2024, raising questions about the government’s expectations for economic policy and growth.
Analysts and economists have closely watched the process of selecting Perry’s successor, particularly amid concerns over the independence of Bank Indonesia and possible political pressure on monetary policy.
Prabowo’s nephew, Thomas Djiwandono, who also serves as a deputy governor, had previously been mentioned as a potential contender for the position.
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Concerns over the central bank’s autonomy have also increased following the passage of a bill in July giving parliament a role in assessing the institution’s performance and assigning it responsibility for supporting economic growth.
The leadership change comes as Indonesia faces economic pressures, including weakness in the rupiah and volatility in the stock market.
The rupiah has lost significant ground amid rising energy costs and the continuing impact of geopolitical tensions in the Middle East.
Bank Indonesia’s board of governors, made up of the governor and several deputies, is responsible for determining monetary policy and setting the country’s benchmark interest rate.
At its most recent policy meeting in late July, the central bank kept its benchmark rate at 5.75 per cent after cumulative rate increases of 100 basis points earlier in the year.
Destry’s possible appointment will therefore be closely monitored by investors for indications of how Bank Indonesia’s monetary policy could evolve under the Prabowo administration.