Perry Warjiyo steps down from BI; Destry is interim governor

Perry Warjiyo has stepped down as Governor of Bank Indonesia, and President Prabowo Subianto has received his resignation letter. Minister of State Secretary Prasetyo Hadi said the reason Perry gave in the letter was personal. Under the mechanism set out in the law, Senior Deputy Governor Destry Damayanti immediately began serving as interim governor. The resignation surprised markets because Perry’s term was still supposed to be running. After the news emerged, the rupiah briefly weakened to near Rp18.000 per U.S. dollar and the IHSG moved erratically. Several analysts said attention now turns to who will be nominated by the President as a permanent BI governor to the DPR, because the transition will affect investor confidence and perceptions of the central bank’s independence.