Indonesia’s central bank governor resigns as Prabowo administration tightens grip on monetary policy

Perry Warjiyo, the governor of Bank Indonesia, resigned on July 27, 2026. He cited personal reasons. The timing, however, tells a different story. Warjiyo had been in the role since May 2018 and was expected to serve out his second term through 2028. Instead, he submitted his resignation letter on July 25, just months after a series of moves by the Prabowo Subianto administration that have steadily eroded the institutional firewall between Jakarta’s political machinery and the country’s central bank. Destry Damayanti has been appointed as interim governor, stepping into what is now one of the most politically fraught jobs in Southeast Asian finance. The nephew, the bill, and the exit On January 27, 2026, Thomas Djiwandono was appointed as Bank Indonesia’s deputy governor. He was sworn in on February 9. He is President Prabowo Subianto’s nephew. Then came the legislative piece. On June 4, 2026, Indonesia’s parliament passed a bill that enhanced oversight mechanisms over Bank Indonesia, including new provisions for removing board members. Central bank independence relies on exactly those board members being difficult to fire. When you make it easier to remove them, you’re handing the...