The governor of Indonesia's central bank has resigned unexpectedly, leaving his post two years early as Southeast Asia's largest economy battles a weakening currency and escalating fiscal pressures linked to the war in the Middle East.
President Prabowo Subianto accepted the early departure of Perry Warjiyo, who had led Bank Indonesia since 2018, State Secretary Prasetyo Hadi confirmed in Jakarta on Monday.
The outgoing governor offered personal reasons for his departure on 25 July without offering further detail. His second five-year term was originally scheduled to run until 2028.
Prasetyo stated that President Subianto expressed sincere gratitude and high appreciation for the work carried out during the seven-year tenure. Senior Deputy Governor Destry Damayanti has been named interim governor.
The Indonesian rupiah has come under intense pressure following sharp increases in global energy costs. According to financial data provider Bloomberg News, the currency has lost approximately seven per cent of its value since the outbreak of hostilities in the Middle East, marking it as the worst-performing currency across Asia.
To stabilise exchange rates, Bank Indonesia raised its benchmark interest rate by 100 basis points this year, bringing the key rate to 5.75 per cent.
As a net importer of crude oil, Indonesia faces significant budget strain. Despite rising costs to public finances, ministers have so far kept prices for heavily subsidised fuel frozen.
Consumer inflation reached 3.34 per cent in June. Worsening economic conditions led to student demonstrations demanding curbs on government spending, including a reduction in a multi-billion-pound national free-meals initiative.
Protesters also expressed anger over a separate state decision to increase non-subsidised fuel prices by a third. Meanwhile, Indonesian financial markets have seen equity valuations fall by roughly one third during 2026.
