Resignation of Bank Indonesia Governor

Bank Indonesia Governor Perry Warjiyo unexpectedly resigned, raising investor concerns about the central bank's independence. Destry Damayanti was appointed as interim governor. The Indonesian rupiah fell 0.32% after the announcement. Indonesia is facing currency depreciation and economic problems due to the war in the Middle East.

Bank Indonesia Governor Perry Warjiyo unexpectedly resigned, a move analysts said could raise investor concerns about the central bank's independence and the country's financial management. Indonesian State Secretary Prasetyo Hadi announced during a press conference that President Prabowo Subianto accepted the resignation. Destry Damayanti was appointed as interim governor, and she stated that Warjiyo informed the government on Saturday, July 25, of his decision for personal reasons. The Indonesian rupiah fell about 0.32% to 17,992 against the dollar following the announcement and continued to decline. The main stock index fluctuated between gains and losses in volatile trading, and the stock exchange lost about a third of its value in 2026. Warjiyo had held the position since 2018, and his second term was to end in 2028. The country is suffering from currency depreciation and economic problems caused by the war in the Middle East, and the Indonesian currency has been severely affected by rising energy prices. It is the worst-performing currency in Asia, losing about 7% of its value since the start of the war. The central bank raised its key interest rate by 100 basis points this year to 5.75%. Indonesia is the largest economy in Southeast Asia and a net oil importer. The government insisted on supporting fuel prices despite the high costs. Consumer prices rose 334% in June last year, and economic pressures led to student protests.