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BI Governor Resigns, Economists Suspect Political Pressure

BI Governor Resigns, Economists Suspect Political Pressure

The resignation of Bank Indonesia Governor Perry Warjiyo from his post is seen as a blow to the stability of Indonesia's monetary sector. The decision raises suspicions of political pressure, considering his term was not due to end until May 2028. Executive Director of the Center of Economic and Law Studies (CELIOS), Bhima Yudhistira, regretted the decision. According to him, Perry's resignation comes amid pressure on the rupiah exchange rate that has been ongoing since late 2025. Bhima believes the pressure on the monetary sector is inseparable from fiscal issues, such as the widening state budget deficit, large-budget projects with problematic planning, weakening tax revenues, and increased government debt that triggers investor concerns. Bhima also highlighted that Bank Indonesia is actually the one most blamed for the weakening of investor confidence and the rupiah exchange rate. He thinks the fiscal authority's intervention in monetary matters has been excessive. In addition, the passing of the revised P2SK Law and the PFII Law has also reduced BI's supervisory authority. State Secretary Minister Prasetyo Hadi revealed that President Prabowo Subianto received Perry's resignation letter on July 26, 2026, and will issue a decree for an honorable discharge. BI Senior Deputy Governor Destry Damayanti has been appointed as Acting Governor of BI until a definitive governor is determined. https://www.gelora.co/2026/07/gubernur-bi-mundur-ekonom-duga-ada.html

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brother
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Oh dear, I hope the replacement can maintain BI's independence. Don't let policies just follow political whims.

brother
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The rupiah's weakening like this, and yet they're just bailing. Investors are getting more nervous.

brother
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Seems like there really is some political intervention going on. If he steps down when his term's still long, that's just weird.

brother
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No wonder the exchange rate tanked-turns out there’s drama like this going on behind the scenes.

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