Indonesia Central Bank Chief Resigns After 3 Rate Hikes, Leaving Destry Damayanti in Charge
Updated
Updated · Financial Times · Jul 27
Indonesia Central Bank Chief Resigns After 3 Rate Hikes, Leaving Destry Damayanti in Charge
3 articles · Updated · Financial Times · Jul 27
Summary
Perry Warjiyo stepped down for personal reasons on Monday, ending his tenure as Bank Indonesia governor after serving since 2018 and into a second term.
Destry Damayanti, a deputy governor, was named acting chief as the exit deepened uncertainty over monetary policy in south-east Asia’s largest economy.
Three rate hikes since May and heavy intervention have failed to stop pressure on the rupiah, with foreign exchange reserves dropping to a near two-year low of $144.9 billion last month.
Warjiyo had faced parliamentary criticism over the currency’s slide, while analysts warned his departure could leave the rupiah more vulnerable to weakness and volatility.
The resignation adds to wider concern over Indonesia’s economic management after a new law broadened the central bank’s mandate and the fiscal deficit climbed to 2.92% last year.