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For better or worse, Perry seen as guarantor of stability at BI
Economists agree that the nomination of the central bank governor for a second term in office signals predictability in Indonesia’s monetary policy as next year’s elections draw closer, but some consider him too obedient to the government.
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Bank Indonesia (BI) Governor Perry Warjiyo speaks during the annual meeting of Indonesia's central bank with financial sector stakeholders in Jakarta on Nov. 30, 2022. (Reuters/Willy Kurniawan)
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conomists say President Joko "Jokowi" Widodo's decision to nominate Bank Indonesia (BI) Governor Perry Warjiyo for a second five-year term in office signals continuity in monetary policy ahead of next year’s presidential elections, but not all agree that that is a good thing.
Most experts have welcomed the stability the move promises to provide for the national economy amid uncertainty on the global stage, but some have expressed discomfort, arguing that the central bank needs a new figure with a more progressive monetary vision.
According to the chairman of the House of Representatives budget committee, Said Abdullah, Jokowi has sent Perry's name to the House as his sole candidate for the post. Lawmakers are expected to deliberate on the appointment when they return from recess on March 13.
Jokowi confirmed the news when speaking to journalists at the site of the new capital city on Thursday and stressed the need for “synergy of monetary and fiscal policy” to overcome the impact of the global economic crisis.
“We have to choose a figure with a lot of experience,” Jokowi said, as quoted by Antara.
A governor’s reappointment to a second term in office is a rarity in the central bank's history.
Rully Wisnubroto, a senior economist at Mirae Asset Sekuritas, said Perry had a good track record and "more than enough" experience in devising monetary policy, especially safeguarding the stability of the national economy during the pandemic.
