Central bank governor nominated due to ‘vast experience’, says Indonesia president

INDONESIAN President Joko Widodo said on Thursday (Feb 23) he nominated incumbent central bank governor Perry Warjiyo for another five-year term because of his vast experience.

Jokowi, as the president is known, said in a television broadcast, “in this global turmoil, we cannot take risks” on posts that hold monetary authority.

Parliament said on Wednesday it had received a letter containing the nomination of the governor from the president.

Warjiyo’s current term is set to end on May 23 and parliament has a month to consider the nomination and could reject it.

Radhika Rao, an economist with DBS Bank, said on Thursday morning the decision to pick Warjiyo “bodes well for policy stability and continuity”.

“For now, the benchmark rate is likely to be left on hold in March, with any unexpected bouts of volatility in the rupiah likely to be met by intervention efforts,” she said in a note.

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Indonesia president nominates central bank governor for second term

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Last week, Warjiyo said he saw no need for further hikes, after BI lifted rates by a total of 225 basis points since August, despite major central banks including the US Federal Reserve seen continuing with their monetary tightening. REUTERS