Bank Indonesia governor Perry Warjiyo resigns early amid rupiah pressure

Bank Indonesia governor Perry Warjiyo resigned before his second term was due to end in 2028, citing unspecified personal reasons, the Indonesian government said on Monday.

State Secretary Prasetyo Hadi said President Prabowo Subianto had accepted the resignation, which Warjiyo submitted on Saturday. Senior deputy governor Destry Damayanti was appointed interim governor.

Warjiyo had led the central bank since 2018. His departure comes as Indonesia faces pressure on the rupiah and wider economic strain.

Bank Central Asia chief economist David Sumual said the stock market and currency remained “quite stable” in the hours after the announcement, but warned that the resignation “may cast further policy uncertainty” over the rupiah and the economy.

The rupiah has lost about 7 percent since the Middle East conflict began in February, making it Asia’s worst-performing currency, according to Bloomberg News. Higher energy costs have also placed pressure on the currency.

Bank Indonesia has raised its key interest rate by 100 basis points this year to 5.75 percent to support the rupiah.

Deni Friawan, a researcher at the Jakarta-based Centre for Strategic and International Studies, said the unexpected resignation could unsettle investors by raising questions about monetary policy, inflation control and exchange-rate management.

Analysts said the appointment of a permanent successor would be closely watched. Sumual said policymaking experience and credibility should be central to the decision, while Deni warned that a politically driven appointment could raise doubts about the central bank’s credibility.

Indonesia is a net oil importer. The government has kept heavily subsidised fuel prices unchanged, while prices for non-subsidised fuel have risen by a third.

Consumer prices increased 3.34 percent in June. Student protesters have also demanded cuts to what they described as excessive government spending.

Indonesia’s stock market has lost about a third of its value in 2026, while the stock exchange has faced the possibility of a downgrade by stock market compiler MSCI.