A major disagreement with the finance minister over economic growth strategies preceded Perry Warjiyo's sudden resignation as Indonesia's central bank chief, three sources told Reuters, underscoring months of reported tensions between the country's top financial officials.Perry himself was not present for his resignation announcement, which was made by his deputy alongside a top aide to President Prabowo Subianto in the early hours of Monday. They cited unspecified "personal reasons" for his exit.
Bank Indonesia has been under pressure to support Prabowo's big-growth agenda, even as the rupiah slid to an historic low in June amid concern over Indonesia's fiscal management and central bank independence.
The three people, who have direct knowledge of the matter but requested anonymity for fear of repercussions, did not say whether the disagreement played a direct role in Perry’s resignation, but noted differences had recently intensified regarding Indonesia's liquidity policy and its impact on economic growth and the rupiah.
One of the people said Finance Minister Purbaya Yudhi Sadewa's thinking that liquidity should be abundant was in contrast with BI's effort to manage the exchange rate and was often a source of heated internal debate.
