(Aug 7): Indonesian President Prabowo Subianto is seeking to move quickly to finalise a list of candidates to lead Bank Indonesia, with Acting Governor Destry Damayanti the leading contender to take on the role permanently, according to people familiar with the matter.
It wasn’t immediately clear whether Destry will be the sole nominee for the top spot. The president also plans to nominate candidates for other senior positions at the bank, the people said, asking not to be identified because the discussions are private. Aida S Budiman, a deputy governor, is likely to be nominated to succeed Destry as senior deputy governor, one of the people said.
The plans underscore the government’s urgency in settling BI’s leadership, two weeks after long-serving Perry Warjiyo was ousted as governor amid growing friction with the president and the finance minister.
The choice of Destry, a senior deputy governor, would likely bring some comfort to investors rattled by the sudden leadership shake-up at the institution. A trained economist, Destry is seen as market-friendly and an effective communicator with Prabowo, and is backed by some in the president’s inner circle, one of the people said.
State Secretary Prasetyo Hadi on Friday afternoon told reporters that Destry was “definitely one of the names being discussed”, adding that no decision had been made and no presidential letter had yet been sent to parliament.
Officials are also still discussing whether the new governor would be appointed to serve out the remaining two years of Warjiyo’s term or begin a full five-year term, Prasetyo said.
Destry declined to comment. Bank Indonesia and Aida didn’t immediately respond to requests for comment.
The Government Communication Agency said it doesn’t comment on internal deliberations or reports regarding the nomination process. It added that the government is committed to upholding “institutional governance, legal certainty and the independence of Bank Indonesia, while ensuring continuity in maintaining monetary and financial system stability”.
Prasetyo said Thursday that the president would finalise the names of candidates as early as this week. The soonest parliament could meet to consider the matter is Aug 14, when lawmakers return from recess and attend an annual day of major speeches by the president coinciding with Independence Day.
The president’s ruling coalition controls a majority in parliament, and political analysts expect the nominees to be swiftly approved.
The administration is seeking a swift resolution both to calm investors and to stave off political manoeuvring over the succession, one of the people familiar with the matter said. Another reason is to assuage investors concerned that the top spot could go to someone with less central bank experience, amid speculation that Thomas Djiwandono, a nephew of Prabowo and former finance ministry official who joined the bank earlier this year, could be under consideration for promotion, the person said.
Destry, 62, was first appointed senior deputy governor at BI in 2019. In that role, she’s helped to oversee monetary operations, financial markets and payment systems, and been a key voice on monetary policy and the rupiah.
She was appointed acting governor after the sudden resignation of Warjiyo two weeks ago, a move that unnerved investors who have become increasingly concerned by Prabowo’s erratic policy choices.
Prabowo last week hinted Destry was a top contender to take on the role permanently. “Ibu Destry — she is the acting governor,” he said at an event in Central Java, using a respectful Indonesian title for women. “What do we think? OK? I’ll leave it to parliament.”
If confirmed, Destry will become the first woman to serve as permanent governor of the central bank. She’ll be tasked with restoring investors’ faith in the institution, maintaining policy stability and steadying the currency, which has come under pressure for much of the past year.
In May, Destry pledged “smart interventions” in foreign exchange markets to support rupiah stability.
Before joining BI, Destry’s career spanned government, banking and economic research. She was chief economist at PT Bank Mandiri before becoming a commissioner at the Indonesia Deposit Insurance Corp. Destry holds a bachelor’s degree in economics from the University of Indonesia and a master’s degree in regional science from Cornell University.
At the central bank, Destry has frequently engaged with investors, economists and businesses to explain BI’s policy stance. She played a prominent role in guiding monetary policy through the Covid-19 pandemic and more recent episodes of rupiah weakness, inflation pressures and market volatility.
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