Indonesia’s central bank governor has resigned early as the country battles a weakening currency and other economic woes sparked by the Middle East war, the government said Monday.
President Prabowo Subianto has accepted the resignation of Perry Warjiyo, who had served as Bank Indonesia’s governor since 2018, State Secretary Prasetyo Hadi told reporters in Jakarta.
His second term was to have ended in 2028.
Perry cited personal reasons for his resignation, tendered on July 25. He did not elaborate.
Prasetyo said the president had extended his thanks to Perry “and the highest appreciation for his dedication over approximately seven years leading Bank Indonesia”.
The bank’s senior deputy governor, Destry Damayanti, has been appointed as interim governor, he added.
Indonesia’s currency has taken a battering from surging energy costs caused by the Middle East war.
It has been Asia’s worst-performing currency, according to financial outlet Bloomberg News, shedding around seven percent since the war began.
Bank Indonesia has lifted its key interest rate by 100 basis points so far this year to 5.75 per cent.
Southeast Asia’s biggest economy is a net oil importer, but the government has insisted on leaving the price of heavily subsidised fuel unchanged despite high costs to the public purse.
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Consumer prices rose 3.34 per cent in June, and growing economic strain triggered protests by students demanding the government stop excessive spending, including on its billion-dollar free-meals scheme, which has since been cut back.
They also hit out at a government decision to raise the non-subsidised fuel price by a third.
The Indonesian stock market has lost about a third of its value in 2026.
AFP
