Indonesian President Prabowo Subianto has nominated Destry Damayanti, a senior economist, to lead the country's central bank. This move comes after the sudden resignation of the previous governor raised concerns about the bank's independence, and is expected to help ease investor anxiety.

State Secretary Prasetyo Hadi announced at a Monday press conference that Destry, who is currently the acting governor of Bank Indonesia, is the president's sole nominee for the position. Her appointment is still subject to approval by the Indonesian parliament.

Late last month, the former central bank governor, Perry Warjiyo, abruptly resigned, leaving two years remaining on his term. This prompted the president to begin the selection process for a new leader. External pressure has been mounting for the central bank to align with President Prabowo's economic agenda, leading investors to worry that political demands could interfere with Bank Indonesia's (BI) primary mission of stabilizing the rupiah and maintaining financial market stability.

Destry has served as a senior deputy governor of Bank Indonesia for seven years and is widely recognized within the industry as a highly competent technocrat. The market views this nomination as a key step to address these concerns. The broader shake-up at the central bank's top level comes amid widespread market anxiety over a lack of policy predictability and increased government intervention under the Prabowo administration.

Indonesia's benchmark stock index has fallen by approximately 25% this year, while the rupiah has depreciated by about 6%, placing both among the worst-performing major assets globally. Destry would become the first woman to officially lead Bank Indonesia if her appointment is approved by parliament. The Indonesian parliament is currently in recess and is scheduled to reconvene on Friday. Next week is Indonesia's Independence Day, and President Prabowo is expected to deliver his state of the nation address on the day parliament resumes. Bank Indonesia has not yet responded to requests for comment from the media.