JakartaGlobe-July 27
The government sought to reassure financial markets on Monday that Perry Warjiyo’s resignation as Bank Indonesia governor would not disrupt monetary policy, stressing that the central bank would continue to operate normally under its institutional framework.
Coordinating Economic Affairs Minister Airlangga Hartarto said the central bank’s mandate to safeguard the rupiah and maintain monetary stability remains unchanged despite the leadership transition.
“What matters is the institution. Bank Indonesia will continue carrying out its responsibility to maintain the exchange rate and monetary stability,” Airlangga told reporters in Jakarta.
He said the government had yet to decide who would succeed Perry as the next central bank governor but added that routine policy coordination between the government and Bank Indonesia would continue uninterrupted.
“We’ll wait and see who the replacement will be. We continue to coordinate regularly,” Airlangga said, noting that the government remains responsible for fiscal policy while Bank Indonesia oversees monetary policy.
Earlier in the day, State Secretary Prasetyo Hadi announced that President Prabowo Subianto had accepted Perry’s voluntary resignation, thanking him for nearly seven years of service as governor.
Following Perry’s departure, Senior Deputy Governor Destry Damayanti was appointed acting governor until the government and the House of Representatives appoint a permanent successor.
