By Mardiyyah Abubakar
Indonesia’s central bank governor, Perry Warjiyo, has resigned before the end of his second term as the country grapples with economic challenges triggered by the Middle East war.
The government announced on Monday that President Prabowo Subianto accepted Warjiyo’s resignation after he stepped down for personal reasons.
State Secretary Prasetyo Hadi said Warjiyo submitted his resignation on July 25. His second term as Bank Indonesia governor was due to end in 2028.
Prasetyo thanked Warjiyo for his nearly seven years of service and praised his dedication to leading the country’s central bank since 2018.
The government appointed Senior Deputy Governor Destry Damayanti as the interim governor.
Indonesia’s economy has faced mounting pressure as the Middle East war drives up global energy prices.
The Indonesian rupiah has fallen by about 7% since the conflict began, making it Asia’s worst-performing currency, according to Bloomberg News.
To curb inflation and support the currency, Bank Indonesia has raised its benchmark interest rate by 100 basis points this year to 5.75%.
Although Indonesia is a net oil importer, the government has kept heavily subsidised fuel prices unchanged despite rising costs.
Consumer prices increased by 3.34% in June, while growing economic hardship sparked student protests over government spending and higher non-subsidised fuel prices.
Indonesia’s stock market has also lost about one-third of its value in 2026 as investors reacted to the country’s worsening economic outlook.
