Global Markets
Home›Global Markets›Emerging Markets›Indonesia central bank governor Warjiyo resigns ahead…
Indonesia central bank governor Warjiyo resigns ahead of market open
Destry Damayanti was named interim governor, with analysts warning the change could raise concerns about Bank Indonesia’s independence and investor confidence.
Bank Indonesia Governor Perry Warjiyo has stepped down from his role, with Indonesia’s State Secretariat Minister Prasetyo Hadi saying on Monday that President Prabowo Subianto has accepted Warjiyo’s resignation ahead of the opening of financial markets in Jakarta, according to SCMP Economy. Hadi appointed Destry Damayanti, a senior deputy governor at Bank Indonesia, as interim governor. Destry said Warjiyo stepped down for personal reasons, and Hadi said Warjiyo submitted his resignation through a letter to the president but did not provide further details. Analysts said the move could unsettle investors. Angus Mackintosh of Aletheia Capital said Warjiyo’s resignation is likely to be taken negatively by the market because he was seen as a steady governor with a strong track record. Mackintosh added that much will depend on who takes over permanently. He said if Thomas Djiwandono were to step in as a deputy governor, the market could view that choice with suspicion because the position is crucial and Bank Indonesia is expected to remain independent. Warjiyo was first appointed in 2018 and reappointed for a second five-year term in 2023.