Bank Indonesia Governor candidate Destry Damayanti prepares for her fit and proper test before Commission XI of the Indonesian House of Representatives (DPR) on August 26. (ANTARA/Rivan Awal Lingga)
The sole gubernatorial candidate, Destry Damayanti, presented her vision for leading Bank Indonesia (BI) on August 26, pledging to support economic growth and job creation while firmly maintaining the central bank’s independence.
The three missions centre on preserving stability and leveraging it as the primary driver for sustainable economic growth, whilst enhancing collaboration among stakeholders through Sinergi Merah Putih (Red and White Synergy)
As for the five strategic initiatives, Destry committed to, first and foremost, strengthen the monetary policy mix to generate sufficient responses to external volatility. Additionally, in accordance with BI’s mandate, she emphasised a plan to revitalise the monitoring of foreign exchange flows (LLD). She asserted that this measure is extremely important as there is substantial potential for under-invoicing, stating that the monetary body “cannot do it alone because data related to LLD involves many parties”.
Furthermore, Destry placed a substantial focus on inclusive finance, noting that “inclusion and Sharia (Islamic finance) are key game changers for Indonesia to drive 8% economic growth”.
Destry’s fourth initiative concentrated on BI’s growing mandate that must be balanced with an increasingly strong institution. Concurrently, her last initiative vowed to align all policies under Sinergi Merah Putih. According to her, the central bank’s success is not determined by a solitary institutional endeavour, but rather, through collaboration and harmonisation with the current administration’s vision of Asta Cita (the eight-point national development plan of President Prabowo Subianto, including food security, human resource development and downstream industrialisation).
“Synergy is not just about working together, but about uniting strengths, complementing each other and moving in harmony to achieve better results than what could be accomplished if we worked alone,” she concluded.
The confirmation hearing (“fit and proper test”) was led by Mukhamad Misbakhun, serving in his capacity as the Chairman of Komisi XI of the Indonesian House of Representatives. He noted that should the nomination be approved by parliament, Destry will serve a full five-year term from 2026 to 2031, rather than just completing the remainder of her predecessor’s term. Of note, Destry has assumed the role of interim governor since late July, following the sudden resignation of Perry Warjiyo, who had led the central bank for over seven years.
On the same day, Komisi XI also held the same test for Aida S. Budiman, who is envisioned to succeed Destry as Senior Deputy Governor.
What does this mean for businesses?
Following former governor Perry Warjiyo’s unexpected resignation last month, financial markets reacted with initial scepticism, evidenced by a brief drop in the stock index (IHSG). To restore investor confidence, Destry’s immediate strategic roadmap aims to guarantee market continuity and structural stability. Backed by her extensive macroeconomic background, she is highly likely to earn market credibility. Nonetheless, corporate entities maintain lingering anxieties regarding potential fiscal dominance as the Prabowo administration doubles down on capital-intensive flagship initiatives like the free nutritious meal (Makan Bergizi Gratis, MBG) and red and white village cooperative (Koperasi Desa Merah Putih) programmes.
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