Indonesian President Prabowo Subianto has formally nominated his nephew, Thomas Djiwandono, for a position on the central bank’s board of governors, triggering immediate concerns about the financial institution’s independence. The announcement was confirmed by State Secretariat Minister Prasetyo Hadi during a Monday press conference, revealing that multiple candidates had been submitted to parliament for consideration following the resignation of incumbent deputy governor Juda Agung.
Djiwandono, who currently serves as deputy finance minister—a position he assumed in July 2024 under previous president Joko Widodo—now faces parliamentary scrutiny through a mandatory ‘fit-and-proper’ hearing process. The nomination comes at a critical juncture for Indonesia’s economic policy, with the central bank preparing to announce its latest benchmark interest rates this week.
The development has reignited longstanding concerns about governance transparency in Southeast Asia’s largest economy, which has historically struggled with corruption and concentration of power among political elites. Bank Indonesia, tasked with maintaining monetary stability and overseeing the financial system, now faces questions about its operational independence from executive influence.
Central bank spokesman Ramdan Denny Prakoso emphasized that ‘Bank Indonesia remains focused on its core mandates of currency stability, payment system integrity, and financial system security to support sustainable economic growth.’ The statement came as President Prabowo pushes an ambitious economic agenda aiming to accelerate growth from approximately 5% to 8% by 2029, adding significance to the central bank’s leadership composition.