Prabowo Nominates Destry Damayanti to Lead Bank Indonesia as Markets Reel From 25% Stock Slide
Updated
Updated · Financial Times · Aug 10
Prabowo Nominates Destry Damayanti to Lead Bank Indonesia as Markets Reel From 25% Stock Slide
3 articles · Updated · Financial Times · Aug 10
Summary
Destry Damayanti, Bank Indonesia’s acting governor and sole nominee, was tapped by President Prabowo Subianto to replace Perry Warjiyo after his abrupt resignation two years before his term was due to end.
Her nomination is meant to calm fears over central bank independence, with investors worried Prabowo might install an ally to push his 8% growth agenda over support for the rupiah and financial stability.
Those concerns have deepened after parliament broadened BI’s mandate to include real-sector growth and jobs, while the bank has already raised rates three times since May by a total of 1 percentage point.
Indonesia’s benchmark stock index is down about 25% this year and the rupiah has weakened about 6%, underscoring wider unease over policy unpredictability and state intervention under Prabowo.
Parliament must confirm Destry after it returns from recess on Friday; if approved, the seven-year senior deputy governor would become the first woman to permanently lead the central bank.