Thomas Djiwandono Appointed as Deputy Governor of Bank Indonesia Amid Independence Concerns

Indonesia's parliament has appointed Thomas Djiwandono, nephew of President Prabowo Subianto, as a deputy governor of the central bank, sparking concerns about the institution's operational independence. The unanimous decision was made during a plenary session, with Thomas set to be formally sworn in by the Supreme Court.

Investor worries about Bank Indonesia's independence affected the rupiah, causing it to hit a record low last week before stabilizing. In his statements, Thomas pledged to uphold the central bank's independence and align fiscal and monetary policies, having resigned from political affiliations to mitigate conflicts of interest.

Thomas emphasized the law's robustness in safeguarding the bank's independence and highlighted a commitment to enhance synergy between the central bank and fiscal policymakers. His appointment was endorsed for his potential to unify different economic strategies, reflecting broad parliamentary backing.