Destry Damayanti nominated to lead Bank Indonesia

Indonesian President Prabowo Subianto has nominated acting central bank governor Destry Damayanti as the sole candidate to lead Bank Indonesia, the government said Monday.

“There is only one name, it is Destry Damayanti,” presidential spokesman Prasetyo Hadi told reporters in Jakarta.

Parliament, which is in recess, will make the final decision on the appointment. The nomination is being watched by markets after Perry Warjiyo abruptly resigned last month.

Damayanti, a 62-year-old economist, has served as acting governor since Perry's departure. Before that, she had been a deputy governor of the central bank since 2019.

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

Analysts said the choice of replacement would be watched for signs of political interference. Prabowo's nephew Thomas Djiwandono, another deputy governor, had been discussed as a possible candidate.

Concerns over Bank Indonesia's independence were increased by a bill passed in July that tasked parliament with evaluating the institution's performance and gave the central bank responsibility for economic growth, a key focus for Prabowo.

Perry resigned during a difficult period for Indonesian markets. The rupiah has fallen about 7% since the Middle East conflict erupted in February, making it Asia's worst-performing currency, according to Bloomberg News.

Bank Indonesia's board of governors sets monetary policy and interest rates. At Perry's final policy meeting in late July, the bank held its benchmark rate at 5.75% after cumulative increases of 100 basis points this year, which Capital Economics said likely frustrated the government.