President Prabowo Subianto has nominated economist Destry Damayanti to permanently lead Indonesia’s central bank, a decision aimed at addressing investor concerns following the sudden resignation of former Governor Perry Warjiyo. Destry, currently serving as acting governor, is President Prabowo’s sole candidate for the position, according to state secretary Prasetyo Hadi. Her appointment requires confirmation by Indonesia’s parliament, which is scheduled to reconvene on Friday.

Warjiyo resigned abruptly late last month, two years before the end of his term, stirring unease among financial markets about potential political interference in the central bank's policies. Under Prabowo’s leadership, there has been increased pressure on Bank Indonesia to align more closely with the government’s economic agenda, raising concerns that political priorities might compromise the institution’s core role in maintaining currency stability and supporting financial markets.

Financial analysts had anticipated that Prabowo might select a governor aligned with his goal of accelerating economic growth, which the president has targeted to reach 8 percent annually during his five-year term, up from the current rate near 5 percent. This shift follows parliamentary approval earlier this year of a law expanding the central bank’s mandate to include support for real-sector growth and job creation.

Destry Damayanti, who has served as senior deputy governor at Bank Indonesia for seven years, is widely regarded as a capable technocrat. Market observers view her nomination as a move designed to reassure investors about the central bank’s continued operational independence. Rully Arya Wisnubroto, chief economist and head of research at Mirae Asset Sekuritas Indonesia, described her as “the safest option,” while noting that monetary policy under her leadership is expected to favor growth in line with government objectives.

Indonesia’s economic backdrop has grown increasingly volatile this year. The country’s benchmark stock index has declined roughly 25 percent, and the rupiah has weakened by about 6 percent, placing them among the worst-performing major markets globally. The central bank has responded by raising interest rates three times since May, totaling a 1 percentage point increase, and its next monetary policy meeting is set for August 18-19.

If parliament confirms Destry’s nomination, she will become the first woman to permanently head Indonesia’s central bank. President Prabowo is anticipated to address parliament on Friday in a speech ahead of the nation’s Independence Day celebrations. Bank Indonesia declined to comment on the nomination ahead of the parliamentary session.