The Indonesian government announced on Monday that Bank Indonesia Governor Perry Warjiyo has submitted his resignation two years before the end of his current term.

State Secretary Prasetyo Hadi disclosed the personnel change during a press conference in Jakarta, with Warjiyo not present at the event. Senior Deputy Governor Destry Damayanti will serve as the acting governor of the central bank.

Warjiyo, who was appointed by former President Joko Widodo in 2018, is currently in his second five-year term. He led the central bank's policy responses during the pandemic and has over 40 years of experience at the institution. The market generally regards his policy approach as stable and cautious.

However, after Prabowo Subianto won the 2024 presidential election, Bank Indonesia has faced pressure for policy adjustments. The government is demanding that the central bank's monetary policy be deeply aligned with administrative goals, with a core objective being to boost annual economic growth from the current level of around 5% to 8%. Earlier this year, Prabowo also appointed his nephew as a deputy governor of the central bank, which has further heightened concerns about the erosion of the institution's independence. Additionally, in June, the Indonesian parliament passed a law broadening the central bank's policy objectives to include real economic growth and employment promotion, while granting lawmakers the authority to evaluate the central bank's performance.

Despite these mounting pressures, Warjiyo, 67, has publicly expressed support for Prabowo's various policy directions. For example, he pledged last year that monetary policy would be "fully committed to supporting economic growth."