ASIATODAY.ID, JAKARTA – Indonesia has nominated Thomas Djiwandono as a candidate for Deputy Governor of Bank Indonesia (BI), a move that has drawn scrutiny from markets and observers amid ongoing pressure on the rupiah and heightened global financial uncertainty.
The nomination has revived debate over the independence of Indonesia’s central bank, particularly given Djiwandono’s close association with President Prabowo Subianto.
Lawmakers, however, sought to reassure investors that the appointment process would not undermine monetary policy autonomy.
Andi Yuliani Paris, a member of Parliament’s Commission XI, which oversees financial and monetary affairs, said Djiwandono’s political ties would not interfere with his role should he be confirmed.
“Thomas Djiwandono has formally resigned from his political party, which ends any party affiliation. That ensures he meets the legal requirements for independence,” Andi Yuliani said on Friday, January 23, 2026.
She added that Bank Indonesia operates under intense public and institutional scrutiny, making political intervention increasingly difficult.
“Central bank independence today is constantly monitored, not only by parliament but also by the public,” she said.
Sensitive Timing for Markets
Djiwandono is one of three nominees put forward by President Prabowo to fill a five-year term ending in 2030. The other candidates are Solikin M. Juhro, an assistant governor at Bank Indonesia responsible for macroprudential policy, and Dicky Kartikoyono, who heads the central bank’s payment systems policy.
The nominees are set to replace Juda Agung, the current deputy governor, who is widely expected to take up a senior post at the Finance Ministry.
Market participants have noted that the nomination comes at a delicate time, with Indonesia’s currency facing external pressures from global interest rate uncertainty and shifting capital flows.
Analysts say perceptions of central bank independence remain a key factor in maintaining investor confidence in emerging markets.
Parliament Begins Confirmation Hearings
Indonesia’s House of Representatives has begun confirmation hearings for the deputy governor candidates, starting with Solikin on Friday. The process is being led by Commission XI Chair Mukhamad Misbakhun, who confirmed the hearings are open to the public and meet parliamentary quorum requirements.
Misbakhun said the hearings were designed to ensure Bank Indonesia continues to fulfil its core mandate of maintaining price stability, safeguarding the financial system, and remaining insulated from short-term political pressures.
“The focus is not on political background, but on the candidate’s capacity to preserve stability and credibility,” he said.
Policy Focus and Institutional Credibility
In his presentation to lawmakers, Solikin emphasised the importance of maintaining a stable currency, anchored inflation, and a resilient financial system as the foundation for sustainable economic growth.
He outlined an integrated policy approach that includes strengthening macroeconomic stability, refining macroprudential tools, managing food price volatility, and accelerating the digitalisation of payment systems.
“Credibility and independence are essential for Bank Indonesia to respond effectively to global volatility,” Solikin told lawmakers.
Next Steps
Parliament is expected to complete hearings for all three candidates by Monday, with a final decision likely to follow shortly in a plenary session.
Lawmakers said the process would prioritise institutional integrity over political considerations, underscoring Indonesia’s commitment to maintaining central bank independence as a cornerstone of macroeconomic stability. (AT Network)
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