THE country’s parliament has confirmed the appointment of President Prabowo Subianto’s nephew to the central bank board, shrugging off concerns about the financial institution’s independence.
Prabowo put forward his nephew, who already serves as deputy finance minister, last week along with two other candidates for the deputy governor of Bank Indonesia job.
Indonesia’s currency, the rupiah, slipped to its weakest level on record against the greenback after Prabowo submitted the three candidates’ names to the parliament.
Lawmakers unanimously shouted “agree” on whether to approve Thomas Djiwandono for the position, which was left open after the former deputy governor resigned.
The parliament congratulated Thomas for being confirmed, deputy speaker Saan Mustopa said.
Thomas is expected to swear an oath of service before the Supreme Court at a later date.
The 53-year-old was made deputy finance minister in July 2024 under Prabowo’s predecessor Joko Widodo.
The South-East Asian archipelago has long struggled against graft and nepotism, with power often concentrated among a small group of political elites.
When asked about market concerns, Thomas said in a parliamentary commission hearing on Monday that “there is no other way than to prove my work”.
He also underlined to lawmakers the importance of synergy between policymakers, but added that it should not compromise the central bank’s independence.
Indonesia’s Finance Minister Purbaya Yudhi Sadewa told reporters last week the rupiah’s tumble was not a significant concern.
“In percentage terms, the wekening (of the rupiah) is small compared to previous levels. So, our system should still be stable.
“The impact on the economy is likely to be minimal,” he told local media.
The bank’s board of governors, which consists of a governor and several deputies, decides its monetary policy including setting key interest rates.
It decided to hold interest rates at 4.75% at a meeting last week. — AFP
