Bank Indonesia governor Perry Warjiyo resigns as rupiah nears IDR 18,100
President Prabowo accepted Warjiyo’s resignation before his term ended in 2028, with Destry Damayanti becoming acting governor as markets weigh central bank independence concerns and renewed pressure on the rupiah.
Bank Indonesia Governor Perry Warjiyo resigned in a surprise move accepted by President Prabowo Subianto, with Senior Deputy Governor Destry Damayanti becoming acting governor under central bank law until a permanent successor is appointed. The leadership change comes before the end of Warjiyo’s second five-year term in 2028 and has added to investor concern about central bank independence and economic policymaking in Indonesia. The rupiah weakened toward IDR 18,100 per dollar on Tuesday for a second straight day of losses ahead of the Federal Reserve’s policy decision, after Bank Indonesia last week unexpectedly kept its key rate unchanged at 5.75% despite expectations for another increase following 100 basis points of tightening since May. The currency is down nearly 8% this year, making it one of Asia’s weakest performers, as markets also weigh fiscal strains, doubts about the government’s agenda, weaker foreign investor confidence and attention on upcoming securities auctions for signs of support for the rupiah.
- acting governor: A temporary central bank chief who serves until a permanent governor is appointed through the formal process.
- central bank independence: The principle that a central bank should make monetary policy decisions without political interference.
- basis points: One-hundredth of a percentage point.