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A man walks past the Bank Indonesia (BI) headquarters on Sept. 2, 2024, in Jakarta. (Reuters/Ajeng Dinar Ulfiana)
The leadership changes in Bank Indonesia (BI), triggered by the sudden resignation of Perry Warjiyo from the governor’s post, are taking place at the worst possible time. Indonesia’s economy is facing global economic turmoil due to the prolonged war in the Middle East, while at home, BI is struggling to strengthen the rupiah, which has been falling sharply this year. Also, this took place when BI has been navigating a difficult trade-off between maintaining monetary stability and supporting economic growth as the Purchasing Managers' Index and consumer confidence index are declining.
The unexpected resignation would create uncertainty and renewed concerns about central bank independence. Perry’s departure could be a loss of policy continuity rather than a reflection of poor performance.
