Indonesia’s President Prabowo Subianto has nominated acting central bank governor Destry Damayanti as the sole candidate to permanently lead Bank Indonesia following the abrupt resignation of Perry Warjiyo last month.
Presidential spokesman Prasetyo Hadi confirmed the nomination on Monday, saying the government had put forward only one candidate for the position.
“There is only one name, it is Destry Damayanti,” Hadi told reporters in Jakarta.
Parliament, which is currently in recess, will have the final say on the appointment. The nomination is being closely watched by financial markets amid concerns about the future independence of the central bank and the government’s economic priorities.
Destry, 62, is an economist who had served as a deputy governor of Bank Indonesia since 2019 before assuming the governor’s role on an interim basis following Warjiyo’s resignation.
Warjiyo’s unexpected departure in late July marked the second resignation of a major economic policymaker since Prabowo took office in October 2024.
The resignation triggered speculation among analysts that Warjiyo may have faced pressure to do more to support the government’s pro-growth agenda.
Capital Economics and other observers said the selection of his successor would be closely monitored for signs of increased political influence over monetary policy.
Another deputy governor, Thomas Djiwandono, who is also Prabowo’s nephew, had previously been mentioned as a potential candidate for the position.
Concerns about Bank Indonesia’s independence have also intensified following the passage of a bill in July that gave parliament responsibility for evaluating the central bank’s performance.
The legislation also assigned Bank Indonesia a role in supporting economic growth, a key priority of the Prabowo administration.
The developments come as Indonesia’s financial markets face significant pressure.
Warjiyo’s resignation occurred against a difficult economic backdrop, with the Indonesian rupiah falling sharply and the country’s stock market also recording declines.
The rupiah has been particularly affected by rising energy costs, losing about 7% since the Middle East conflict erupted in February, according to Bloomberg News.
The decline has made the rupiah Asia’s worst-performing currency over the period.
Bank Indonesia’s board of governors, consisting of the governor and several deputies, is responsible for determining monetary policy and setting interest rates.
At its final policy meeting under Warjiyo in late July, the central bank kept its benchmark interest rate at 5.75%.
The decision came after cumulative rate increases of 100 basis points earlier in the year, moves that analysts at Capital Economics suggested may have frustrated the government as it sought stronger economic growth.
Destry’s nomination therefore places her at the centre of a closely watched transition for Indonesia’s monetary policy.
Her eventual confirmation by parliament could provide an indication of how Bank Indonesia will balance price and currency stability with the Prabowo administration’s push for faster economic expansion.
