The Indonesian government officially announced on Monday that Bank of Indonesia Governor Perry Valgiyo submitted his resignation two years before the current term expires. Secretary of State Prasetio Hadi announced the personnel changes at a press conference in Jakarta, and Valguillo did not appear at the press conference. Senior Vice Governor Destri Damayanti will be acting governor of the central bank. Valguillo was appointed by former President Joko Widodo in 2018 and is currently serving his second five-year term. He led the formulation of the central bank's various response policies during the pandemic. He has over 40 years of experience in the central bank, and the market generally believes that his style of administration is sound. However, after Prabowo Subianto was elected president in 2024, the Bank of Indonesia faced pressure to adjust its policy. The government requested deep coordination between the central bank's monetary policy and administration goals. One of the core goals is to increase the annual economic growth rate from about 5% to 8%. Earlier this year, Prabowo also appointed his nephew as the central bank's deputy governor, which further heightened concerns about the weakening of the central bank's independence. Furthermore, the Indonesian parliament passed a bill in June to broaden the scope of the central bank's policy goals to include real economic growth and employment promotion. At the same time, lawmakers were given the power to evaluate the central bank's performance in carrying out its duties. Despite these multiple pressures, Valguillo, 67, has publicly expressed support for Prabowo's various policies. For example, he promised last year that monetary policy would “fully support economic growth.”

The Indonesian government officially announced on Monday that Bank of Indonesia Governor Perry Valgiyo submitted his resignation two years before the current term expires. Secretary of State Prasetio Hadi announced the personnel changes at a press conference in Jakarta, and Valguillo did not appear at the press conference. Senior Vice Governor Destri Damayanti will be acting governor of the central bank. Valguillo was appointed by former President Joko Widodo in 2018 and is currently serving his second five-year term. He led the formulation of the central bank's various response policies during the pandemic. He has over 40 years of experience in the central bank, and the market generally believes that his style of administration is sound. However, after Prabowo Subianto was elected president in 2024, the Bank of Indonesia faced pressure to adjust its policy. The government requested deep coordination between the central bank's monetary policy and administration goals. One of the core goals is to increase the annual economic growth rate from about 5% to 8%. Earlier this year, Prabowo also appointed his nephew as the central bank's deputy governor, which further heightened concerns about the weakening of the central bank's independence. Furthermore, the Indonesian parliament passed a bill in June to broaden the scope of the central bank's policy goals to include real economic growth and employment promotion. At the same time, lawmakers were given the power to evaluate the central bank's performance in carrying out its duties. Despite these multiple pressures, Valguillo, 67, has publicly expressed support for Prabowo's various policies. For example, he promised last year that monetary policy would “fully support economic growth.”