Indonesia central bank governor Warjiyo steps down in surprise exit

Bank Indonesia Governor Perry Warjiyo has stepped down from his role, Indonesia’s State Secretariat Minister Prasetyo Hadi said on Monday, 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 Warjiyo’s resignation, the minister said ahead of the opening of financial markets in Jakarta.

Destry Damayanti, a senior deputy governor at BI, has been appointed as interim governor. Destry said that Warjiyo 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 Asean specialist, at Aletheia Capital in Singapore. “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 Warjiyo submitted his resignation through a letter to the president, but declined to ‌elaborate on Warjiyo’s personal reasons. Warjiyo could not be reached for comment.

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