Indonesia confirms Destry Damayanti as central bank chief

Indonesia's parliament confirmed Destry Damayanti as central bank governor on Sept. 1, following Perry Warjiyo's resignation in July.

Destry, a 62-year-old economist, had been acting chief since Perry left office. She was the only candidate after being nominated last month by President Prabowo Subianto.

Before taking the top job at Bank Indonesia, Destry had been a deputy governor at the central bank since 2019. Fitch Ratings said her nomination reinforced “expectations of policy continuity”.

Her selection had been watched for signs of possible political pressure on the central bank. Prabowo's nephew Thomas Djiwandono, a deputy governor, had previously been discussed as a possible nominee.

At a confirmation hearing last week, Destry said she would keep Bank Indonesia credible in maintaining stability while supporting sustainable economic growth.

Perry's resignation was the second departure of a major economic policymaker since Prabowo took office in October 2024. Capital Economics and other observers said the resignation sparked speculation that Perry had been pressured to do more to support the government's pro-growth agenda.

Concerns about Bank Indonesia's independence had also been raised after a bill passed in June tasked parliament with evaluating the central bank's performance and gave it responsibility for economic growth.

Perry left during a difficult period for Indonesian markets, with the rupiah falling and the stock market slumping. The central bank's board of governors sets monetary policy and interest rates. It held borrowing costs at 5.75 percent in July and left them unchanged last month.