Indonesia Central Bank Chief Perry Warjiyo Unexpectedly Resigns

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Or sign-in if you have an account.Perry Warjiyo Photographer: Dimas Ardian/Bloomberg Photo by Dimas Ardian /Bloomberg(Bloomberg) — Bank Indonesia Governor Perry Warjiyo has resigned for “personal reasons,” the government announced Monday, the latest development under President Prabowo Subianto likely to unnerve investors. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountState Secretary Prasetyo Hadi announced the resignation at a briefing in Jakarta on Monday, where Warjiyo was not present. Senior Deputy Governor Destry Damayanti will take over as acting governor. Warjiyo didn’t immediately respond to a request for comment. Rupiah offshore non-deliverable forwards held an earlier loss after announcement.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againWarjiyo, appointed by former President Joko Widodo in 2018 and serving his second five-year term, oversaw the central bank’s response to the pandemic and has been widely considered a steady hand, with more than four decades of experience as a central banker. But under Prabowo, elected in 2024, the bank came under pressure to align policy more closely with the government, including an effort to lift annual growth from around 5% to 8%. With the earlier resignation of former Finance Minister Sri Mulyani Indrawati, Indonesia has now lost the two key personnel most well-known to investors and widely credited for helping turn around the nation from one of the so-called “Fragile Five” to one of the most promising emerging markets.Prabowo also appointed his nephew as a deputy governor earlier this year, further raising fears about an erosion of independence. In June, parliament passed a law expanding the central bank’s objectives to include real sector growth and job creation, and lawmakers gained the power to evaluate its performance.Despite those challenges, Warjiyo, 67, had publicly supported Prabowo’s policies. Last year, for instance, he promised monetary policy would be “all-out, pro-growth.”Investors have also been concerned about budget discipline and policy certainty under Prabowo, who has sought to increase the role of the state, intervene in markets, squeeze the country’s tycoons and increasingly concentrate economic power in the hands of its wealth fund Danantara.The US attack on Iran also complicated Warjiyo’s job by driving up energy prices and leading investors to shy away from energy-importing emerging markets. Repeated interventions by Bank Indonesia, and raising rates by 100 basis points since May, failed to arrest a decline in the rupiah, which is hovering near a record low and is the worst performing currency in Asia this year. Under the law, the president will nominate a replacement and the parliament will have to approve the appointment. Damayanti said that the remaining board of governors will ensure the continuity of BI’s duties.(Updates with additional details, context throughout.)This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.