Indonesia’s Destry wins parliament’s backing as central bank chief, to prioritise stability
Cooperation with state agencies would not compromise central bank independence, said Destry at her Aug 26 vetting
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[JAKARTA] Indonesia’s incoming central bank governor Destry Damayanti on Tuesday (Sep 1) said economic stability would be her top priority, after parliament backed her bid to become the first woman to lead Bank Indonesia.
Destry, 62, was the sole nominee for the job following the surprise resignation in July of governor Perry Warjiyo midway through his second term.
“We will continue good policies that are appropriate with the times, because they depend on current situations,” Destry told reporters after parliament approved her appointment on Tuesday, which followed endorsement by its financial committee on Aug 27.
“We see that global uncertainty is still high, so it means stability will still be our priority,” she said.
President Prabowo Subianto is expected to issue a decree formally appointing Destry.
The central bank will work with the government to keep inflation under control and ensure there is sufficient liquidity in the economy, Destry said.
Destry will take the job at a challenging time for the US$1.4 trillion economy, South-east Asia’s largest, with investors concerned about fiscal management, stock market transparency and the central bank’s autonomy as the president forges ahead with his pursuit of 8 per cent economic growth during his term.
During her vetting on Aug 26, Destry said Indonesia faced a “highly complex situation” that required stronger coordination among different institutions, but stressed that cooperation with state agencies would not compromise central bank independence.
She has said the central bank would support economic growth and job creation while safeguarding financial-system and rupiah stability.
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On Tuesday, in his first public statement since stepping down, former governor Warjiyo said the newly approved leadership of Bank Indonesia should strengthen its mandate of ensuring stability and supporting growth.
Analysts have said Destry, a Cornell-educated economist who has been a senior deputy governor since 2019, would provide continuity in monetary policy while retaining a good working relationship with the Prabowo administration. REUTERS
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