Indonesia’s parliament confirmed Destry Damayanti as the new governor of Bank Indonesia on Tuesday, following the unexpected resignation of Perry Warjiyo in July. Destry, who had served as acting governor since Perry’s departure, was the sole nominee put forward by President Prabowo Subianto last month.

The appointment was closely watched amid concerns over political influence on the central bank, particularly after speculation that Prabowo’s nephew, Thomas Djiwandono, a deputy governor, might be chosen. Destry, 62, has been a deputy governor at Bank Indonesia since 2019 and is an experienced economist.

In a parliamentary confirmation hearing held last week, Destry pledged to maintain the central bank’s role in preserving economic stability while supporting sustainable growth. She emphasized the importance of keeping Bank Indonesia credible and responsive to economic challenges.

Perry Warjiyo’s departure marked the second significant loss of a key economic policymaker since Prabowo assumed office in October 2024. Observers, including Capital Economics, have suggested that Perry may have faced pressure to align more closely with the government’s pro-growth priorities. This came amid a difficult economic environment marked by a weakening rupiah and declining stock market.

The central bank’s independence has been a source of concern, particularly following a June bill that granted parliament the authority to assess Bank Indonesia’s performance and oversee economic growth efforts—a central focus of Prabowo’s administration.

Under its governance structure, Bank Indonesia’s board, including the governor and multiple deputy governors, is responsible for setting monetary policy, including interest rates. Perry’s final policy decision in July maintained the benchmark borrowing rate at 5.75 percent, after a series of increases totaling 100 basis points earlier in the year. That decision reportedly caused frustration within the government, which is eager to support economic growth. The bank kept rates unchanged again in August.

Fitch Ratings noted that Destry’s nomination was seen as supporting expectations of policy continuity at the central bank amid ongoing economic challenges.