Bank Indonesia Governor Perry Warjiyo Resigns Unexpectedly, Sparking Market Turmoil and 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 shocked markets, with the Jakarta Composite Index falling 0.5% and the rupiah weakening past 18,000 per dollar. The move raises fresh concerns about political interference in monetary policy under President Prabowo Subianto, whose expansionary fiscal policies—including a costly free meal program—have widened the deficit and drawn ratings downgrades from Moody's and Fitch. Senior Deputy Governor Destry Damayanti will serve as acting governor. Prabowo will propose three candidates to parliament for a fit-and-proper test. Analysts worry about nepotism after Prabowo's nephew, Thomas Djiwandono, was appointed deputy governor earlier this year. Finance Minister Purbaya Yudhi Sadewa is also a potential candidate. The resignation compounds investor skepticism about Indonesia's economic governance.