January 21, 2026 | 04:08 pm
TEMPO.CO, Jakarta - The nomination of Deputy Finance Minister Thomas Djiwandono as Deputy Governor of Bank Indonesia (BI) has the potential to undermine the central bank's independence, assessed economist Teuku Riefky from the Institute for Economic and Social Research at the University of Indonesia (LPEM UI). Thomas was proposed by President Prabowo Subianto, along with two others, to replace the current Deputy Governor, Juda Agung.
Riefky pointed out that Thomas, who is Prabowo's nephew, had previously drawn scrutiny when he was appointed as deputy finance minister. "If the appointment of the new official leads to BI policies further deviating from its mandate, it will only strengthen indications that the central bank's independence is weakening," Riefky said at the Centre for Strategic and International Studies in Jakarta on Tuesday, January 20, 2026.
The member of the Indonesian Economist Alliance stated that the central bank's independence had already been eroded before Thomas was nominated. Riefky cited the burden-sharing scheme between the central bank and the Ministry of Finance to fund the president's priority programs as one policy that has compromised BI's autonomy.
In addition, he noted a liquidity injection into the banking sector initiated by Finance Minister Purbaya Yudhi Sadewa. According to Riefky, this step blurred the line between the fiscal and monetary domains.
BI's primary mandate is to control inflation and stabilize the rupiah exchange rate. However, Riefky observed that recent BI policies have instead focused on economic growth. "Inflation is relatively under control, but the rupiah remains under sustained pressure, while BI is not making efforts in that area and is instead focusing on economic growth," he added.
Meanwhile, Finance Minister Purbaya Yudhi Sadewa dismissed the notion that BI's independence would be disrupted should Thomas Djiwandono serve as Deputy Governor. "There is nothing unusual. There is no connection to a lack of independence," he said at the DPR Complex in Jakarta on Monday, January 19, 2026.
Purbaya also asserted that the government has never intervened in Bank Indonesia's decision-making process. Despite their distinct roles, he mentioned that the Ministry of Finance and Bank Indonesia continue to coordinate through the Financial System Stability Committee (KSSK) forum.
Read: Bank Indonesia Holds Interest Rate at 4.75% as Rupiah Tumbles
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