Indonesia central bank chief Warjiyo unexpectedly resigns

Indonesia central bank chief Warjiyo unexpectedly resigns. Bank Indonesia Governor Perry Warjiyo resigned abruptly over the weekend. With over four decades of central bank experience, including helping guide Southeast Asia's largest economy through the pandemic, the 67-year-old Warjiyo was seen as a steady policy hand and politically astute technocrat. But he was unable to weather the challenge of President Prabowo Subianto's presidency, stepping down from his post two years early. His resignation, which was announced Monday at a press briefing he didn't attend, comes as Prabowo's government has slowly encroached on the independence of the central bank, from appointing a nephew as deputy governor, to expanding parliamentary oversight, to enlisting the central bank in his aggressive pro-growth agenda. Despite Warjiyo's public alignment with Prabowo and his finance minister, the central bank chief couldn't staunch a long-term selloff by investors. Repeated central bank interventions, as well as 100 basis point hikes in interest rates since May, failed to reverse the fortunes of the country's rupiah, which is hovering near a record low. Attention now turns to his immediate replacement, senior deputy governor Destry Damayanti, the second woman to lead Bank Indonesia as acting governor. She is widely viewed by investors as a key voice on monetary policy and financial market stability, and has often represented the bank at international forums and met with global investors. It's not immediately clear, however, if she'll be appointed on a permanent basis. Beyond Warjiyo's replacement, investors will be watching to see if Prabowo takes steps that further erode the central bank's independence.