Bank Indonesia Governor Perry Warjiyo Resigns Unexpectedly, Rattling Markets and Raising Independence Concerns

Published Jul 28, 01:03 AM UTC

Perry Warjiyo, governor of Bank Indonesia since 2018, resigned unexpectedly two years before his term ended, citing personal reasons. The resignation rattled Indonesian markets, with the Jakarta Composite Index falling 0.5% and the rupiah weakening past 18,000 per dollar. The move compounds investor unease over President Prabowo Subianto's economic policies, including high-spending populist programs and increased state intervention. Ratings agencies Moody's and Fitch recently downgraded Indonesia's outlook, citing policy uncertainty. Concerns about central bank independence are heightened by the presence of Prabowo's nephew, Thomas Djiwandono, as a deputy governor. Senior Deputy Governor Destry Damayanti will serve as acting governor until a permanent successor is chosen from a list of three candidates proposed by Prabowo.