A second source familiar with the matter confirmed that Destry's name was on a list of candidates Prabowo's office had submitted to parliament, but was one of multiple names.

Investors are closely monitoring the nomination process after Bank Indonesia Governor Perry Warjiyo resigned suddenly late last month for personal reasons.

The government thinks it needs to provide certainty for the market by moving quickly with the nomination, with the formal process in parliament expected to begin after lawmakers return from recess on Aug. 14, said the first source, who declined to be named because of the sensitivity of the matter.

"Destry is the frontrunner," the person said, noting she was considered someone markets were comfortable with, and she got along well with both Finance Minister Purbaya Yudhi Sadewa and Prabowo.

The second source confirmed so-called "fit and proper" tests for candidates would begin when parliament returned from recess.

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Destry, the parliamentary speaker, and a spokesperson for the president did not respond to requests for comment. A spokesperson for the central bank said they could not comment because parliament would make the decision.

Goal to boost growth

Warjiyo's surprise departure reignited concerns over independent policymaking at Bank Indonesia, which has been under pressure to support Prabowo's goal to boost growth to 8 percent from around 5 percent now.

The effort has been complicated by a plunging rupiah amid capital outflows triggered by worries about fiscal management, central bank autonomy, transparency issues with Indonesia's equity market, and a lack of investor appetite for risky assets due to the Middle East conflict.

Destry, senior deputy governor since 2019, was BI's second most senior official when Warjiyo resigned.

Fellow BI deputy governor Aida Budiman would be nominated for the No. 2 job, the first source said. Aida did not respond to a request for comment.

Prabowo is allowed to submit up to three names for BI governor, but since 2010 his predecessors have nominated only one to parliament, all of whom secured lawmakers' approval.

Parliament, controlled by Prabowo's big-tent coalition, has one month to approve or reject the candidates.

It was not clear whether the new governor would be appointed for a full five-year term, or the remainder of Warjiyo's tenure, which expires in 2028.

Tension over liquidity policy

Destry, 62, began her career as an economist, and previously worked at Citibank and state lender Bank Mandiri. She has a master's degree from Cornell University, and sat on the board of commissioners for the Deposit Insurer corporation between 2015 and 2019 before joining BI.

The central bank raised interest rates by 100 basis points in three moves over May and June to stem the decline in the rupiah, which fell to a record low of 18,190 against the dollar on June 8.

BI has used other policies to make sure domestic liquidity remains ample to support growth in lending, including for Prabowo's flagship programs.

Before Warjiyo's departure, BI and the finance ministry had for months disagreed over liquidity policies, including BI's use of high-yielding notes to attract foreign capital inflows and Purbaya's policy to manage government cash reserves with commercial banks, Reuters reported.

The first source said no particular policy changes were expected from the new BI chief, but the government hoped cooperation would improve.

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