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View all search resultsPrabowo nominates nephew as central bank deputy governor, sources say
Thomas Djiwandono, a deputy finance minister who is a former businessman, is reportedly set to face a fit-and-proper test by parliament for the new job.
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Deputy finance minister Thomas Djiwandono speaks before the press in the ministry's Jakarta headquarter on Sep. 11, 2024. (JP/Deni Ghifari)
P
resident Prabowo Subianto has nominated his nephew to join the central bank's board of governors, two sources told Reuters, amid growing concern about its independence as the government seeks more support for ambitious economic targets.
Investors have worried that independent monetary policymaking in Southeast Asia's largest economy might be under pressure as Prabowo targets economic growth of 8 percent by 2029, from about 5 percent now.
Those fears grew after Bank Indonesia unveiled a new burden-sharing deal last year to fund some government programs.
Thomas Djiwandono, a deputy finance minister who is a former businessman, will soon face a fit-and-proper test by parliament for the new job, said the two sources, who sought anonymity as they were not authorized to speak to media.
The US-educated Djiwandono will replace current BI board member Juda Agung, one of the sources added.
Djiwandono, Agung, the central bank's spokesperson, and the chairman of a parliamentary panel overseeing assessments for top central bank leadership did not immediately respond to requests for comment.
Prabowo's spokesperson declined to comment.
The bank is set to hold its next monthly monetary policy review later this week.
Each member of the bank's board, comprised of a governor and several deputy governors, has a voting right to decide key interest rate levels and determines BI's policy.
Members are usually career central bankers, economists or former executives of commercial banks appointed by the president with parliamentary approval.
Domestic media IDNFinancials also reported the appointment, citing a source who said Djiwandono was expected to take up the new post in February, barring last-minute changes.
Last year, Djiwandono attended at least one central bank monetary policy review as a representative of the finance minister, but did not have a right to vote.
The move comes as parliament discusses a bill with provisions to strengthen the central bank's role in supporting economic growth.
