Prabowo's Nephew Nominated for Bank Indonesia Board of Governors

JAKARTA - President Prabowo Subianto is reported to have submitted the name of his nephew as a candidate for a member of the Bank Indonesia (BI) Board of Governors.

Launching Reuters, based on the information, it was conveyed by two sources, namely amid growing market concerns about the potential for reduced central bank independence, and as the government strives to achieve ambitious economic targets.

Investor concerns arise because the monetary policy in the country with the largest economy in Southeast Asia is considered potentially under pressure.

This is related to the economic growth target of 8 percent in 2029 which was announced by Prabowo, and far above the current growth achievement which is in the range of 5 percent.

The issue of central bank independence has been increasingly prominent after BI last year introduced a new burden sharing scheme to support the funding of a number of government programs.

Two sources who did not want to be named said that Deputy Minister of Finance Thomas Djiwandono and is a former businessman, will soon undergo a feasibility and suitability test in parliament to fill the position.

In addition, he is also said to replace, the member of the BI Governor's Council Juda Agung who is currently serving.

Thomas Djiwandono is known to have studied in the United States and until this news was compiled, Djiwandono, Juda Agung, BI spokesperson, and the chairman of the parliamentary committee which handles the selection process for the head of the central bank have not responded to the request for confirmation and President Prabowo's spokesperson also chose not to comment.

Meanwhile, Bank Indonesia is scheduled to hold its next monthly monetary policy meeting this weekend.

Meanwhile, the BI Board of Governors consists of a governor and several deputy governors, each of whom has a voting right in determining the reference interest rate and the direction of monetary policy.

In general, members of the BI Board of Governors come from experienced central bankers, economists, or former banking executives, and they are appointed by the president with the consent of the DPR.

In addition, last year, Thomas Djiwandono was recorded as having attended at least one BI monetary policy meeting as a representative of the Minister of Finance, but at that time he did not have a voting right in decision-making.