Indonesia’s central bank chief Perry Warjiyo resigned for personal reasons, announced by state secretary Prasetyo Hadi. Deputy governor Destry Damayanti was appointed acting Bank Indonesia governor. Warjiyo had led the bank since 2018 and was serving his second term.

His departure follows pressure on the rupiah, one of the worst‑performing emerging‑market currencies this year. Bank Indonesia raised rates three times since May, and its foreign‑exchange reserves fell to a near two‑year low of $144.9bn. Last month parliament expanded the bank’s mandate to include job creation and growth.

The resignation adds to policy uncertainty after finance minister Sri Mulyani Indrawati was dismissed last September and amid concerns over central‑bank independence after President Prabowo Subianto nominated his nephew as deputy governor. Analysts warn of heightened volatility for the rupiah.

Since late 2024, Prabowo’s costly welfare programmes, such as the $12.7bn free school meals scheme, have driven the fiscal deficit to 2.92% of GDP, close to the 3% legal cap, while rising oil prices from the Middle East war add budget pressure.