Destry Damayanti, Bank Indonesia‘s interim governor, appeared before Indonesian lawmakers on Wednesday for a “fit and proper” vetting hearing, the final step before an expected confirmation vote on Thursday.
President Prabowo Subianto nominated Damayanti as the sole candidate for the role earlier this month, following the sudden resignation of Governor Perry Warjiyo for personal reasons.
Damayanti, Bank Indonesia’s senior deputy governor since 2019, told parliament’s financial committee that the country was facing a highly complex situation requiring cooperation between institutions, but said this would not affect the central bank’s independence.
She praised the collegial system used by the bank’s Board of Governors and described Warjiyo’s seven-year tenure as governor as “truly remarkable.”
Responding to a question from an opposition lawmaker asking how the committee could be sure she would not simply continue Warjiyo’s approach, Damayanti said she would maintain the bank’s existing policies while improving on them where needed.
If confirmed, Damayanti, 62, would become the first woman to lead Bank Indonesia.
She would begin a five-year term at a difficult time for the $1.4 trillion economy, with investors concerned about fiscal management, central bank independence, and equity market transparency.
The rupiah has fallen about 6% against the US dollar this year, among the worst performances in Asia, while Indonesian stocks have dropped more than 25%.
With parliament dominated by parties allied with President Prabowo, lawmakers are widely expected to confirm Damayanti; they have not rejected a sitting president’s central bank nominee since 2008.
Under Warjiyo, Bank Indonesia raised interest rates by 100 basis points this year, introduced rupiah hedging incentives, and used high-yielding short-term securities to attract capital inflows in an effort to support the currency.
Featured image: Edited by Fintech News Indonesia based on images by whoisdanny via Magnific and Bank Indonesia via Wikimedia Commons.
