Indonesia's Central Bank Governor Perry Warjiyo speaks during a press conference at the Bank Indonesia's headquarters in Jakarta, Indonesia, on Jan 17, 2024. (File photo: Reuters/Willy Kurniawan)

Bank Indonesia Governor Perry Warjiyo steps down

Destry Damayanti, a senior deputy governor at the central bank, has been appointed as interim governor.

27 Jul 2026, 01:14 · CNA · Join

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JAKARTA: Bank Indonesia Governor Perry Warjiyo has stepped down from his role, Indonesia's State Secretariat Minister Prasetyo Hadi said on Monday (Jul 27), a surprise move analysts said could rattle investors worried about the central bank's independence and the country's fiscal management.

President Prabowo Subianto has accepted Perry's resignation, the minister said ahead of the opening of financial markets in Jakarta.

Destry Damayanti, a senior deputy governor at the central bank, has been appointed as interim governor. Destry said that Perry had stepped down for personal reasons.

"Perry Warjiyo’s resignation will likely be taken negatively by the market, given he was a steady pair of hands with a good track record," said Angus Mackintosh, an Association of Southeast Asian Nations (ASEAN) specialist, at Aletheia Capital in Singapore.

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"A lot will depend on who takes over, with Destry, a senior deputy governor, stepping in initially. If Prabowo’s nephew (Thomas Djiwandono), as a deputy governor steps in, the market will regard this with suspicion, given this is a crucial technocratic post and BI should remain independent."

Prasetyo said Perry submitted his resignation through a letter to the president, but declined to elaborate on Perry's personal reasons. Perry could not be reached for comment.

Perry was first appointed as governor in 2018. He was reappointed for a second five-year term in 2023.

Bank Indonesia has been under pressure to support Prabowo's big-growth agenda, while the rupiah slid to an historic low in June amid global market turmoil and concern over Indonesia's fiscal management and central bank independence.

Indonesia's parliament last month passed sweeping legislation that doubles down on the central bank's role to support growth, while empowering lawmakers to make binding recommendations for independent financial regulators and the central bank.

Bank Indonesia "will always ensure the continuity of its duties and authorities" to maintain stability of the rupiah and financial system to achieve an economic environment that is conducive for growth, Destry told reporters following the announcement of the resignation.

The central bank surprised markets last week by keeping policy rates unchanged, instead offering new incentives to attract foreign capital inflows aimed at supporting the rupiah.

It had raised rates by a total of 100 basis points since May in a bid to attract foreign inflows to shore up the rupiah.

"The development is expected to become a key focus for financial markets, as investors await the government's decision on his successor and assess the implications for the continuity of the central bank's monetary policy, institutional credibility, and overall policy direction," brokerage Mirae Asset Sekuritas said in a note.

Last year, the abrupt removal of Indonesia's influential finance minister Sri Mulyani Indrawati rattled markets, with investors fearing the country's fiscal credibility could be eroded by the populist and costly spending plans under Prabowo.

President Prabowo Subianto has accepted Perry's resignation, Prasetyo said.

Destry, a senior deputy governor at Bank Indonesia, has been appointed as interim governor. Destry said that Perry had stepped down for personal reasons.

Perry was first appointed as governor in 2018. He was reappointed for a second five-year term in 2023.

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