Indonesia’s parliament has named Thomas Djiwandono, nephew of President Prabowo Subianto, as deputy governor of Bank Indonesia. The appointment comes amid concerns over the central bank’s autonomy and recent currency volatility.
Thomas Djiwandono’s appointment was secured by unanimous support in parliament, filling the vacancy left by the previous officeholder’s resignation. He will officially assume his duties after a formal swearing-in before the Supreme Court, the date for which has yet to be confirmed.
In comments after the decision, Djiwandono assured the press that he is committed to maintaining the central bank’s independence. When asked about potential interference, he stated that his performance would be the most effective way to dissipate doubts surrounding his appointment. Djiwandono also emphasized that cooperation between policymakers is necessary, but should not put Bank Indonesia’s independence at risk.
Mukhamad Misbakhun, who leads the parliamentary finance commission, said Djiwandono was chosen as someone acceptable across all political groups and capable of aligning fiscal and monetary policy objectives.
News of the nomination had triggered worries among investors about the central bank’s operational independence, prompting the rupiah to hit an all-time low of 16,985 against the U.S. dollar last week. The currency later rebounded as Bank Indonesia opted to keep its benchmark interest rate at 4.75 percent to support the exchange rate.
Finance Minister Purbaya Yudhi Sadewa commented that in percentage terms, the recent depreciation of the rupiah was modest by historical standards and is unlikely to jeopardize overall economic stability.
