Prabowo Suggests Destry Damayanti as BI Governor's Single Candidate, Independent Economist Soroti

PJs of BI Governor Destry Damayanti (Photo: Antara)

JAKARTA - President Prabowo Subianto has submitted Destry Damayanti as the only candidate for Governor of the Bank Indonesia (BI) to the Indonesian House of Representatives (DPR).

Minister of State Secretary Prasetyo Hadi confirmed that the government had sent a presidential letter (surpres) to the DPR regarding the submission.

"So it's a single name, one name, namely in the name of Destry Damayanti's mother who is now the Acting Governor of the BI," he said in a press conference, Monday, August 10.

Andalas University economist Syafruddin Karimi assessed that Destry's sole candidacy provided certainty in the transition process while opening up opportunities for the continuity of monetary policy.

According to Syafruddin, Destry's experience at BI is an important capital because he understands directly the monetary operations and internal dynamics of the central bank.

He added that the strengthening of the rupiah after the announcement of his candidacy showed that the market valued the experience and stability of leadership.

However, Syafruddin said the status of the sole candidate still needed to be supervised by the DPR, and the process of eligibility and appropriateness should not be just a political formality.

"The DPR must test Destry's ability to maintain the rupiah, control inflation, manage the cost of BI securities, and prevent fiscal dominance. Long experience in the central bank is an important capital, but independence is only proven when the governor dares to reject policy pressures that are contrary to monetary stability," he said in his statement.

He assessed that Destry's future challenges are increasingly complex because BI is also required to support the 8 percent economic growth target amid a still vulnerable rupiah, balance of payments pressures, and increasingly limited fiscal space.

According to Syafruddin, BI cannot replace the role of structural reform in the industrial sector, investment, education, and productivity through interest rate policies or liquidity expansion.

He added that excessive monetary easing risked triggering capital outflows, weakening the rupiah, and import inflation, and vice versa, monetary policy that was too tight in the long run could suppress investment and productive credit growth.

"Destry needs to maintain a clear hierarchy of mandates: rupiah and price stability are the foundation, while supporting growth must be carried out through measured macroprudential policies," he said.

Syafruddin assessed that Destry's credibility will be determined by the consistency of data-based decision-making, transparency of communication, and his ability to maintain a professional distance from fiscal interests and short-term political targets.

Meanwhile, Professor of the Faculty of Economics and Business at Airlangga University (Unair) Rahma Gafmi assessed that Destry's candidacy was supported by long experience and a strong track record in the field of monetary and banking.

According to Rahma, Destry's experience in the central bank's internal affairs makes him have a deep understanding of BI operations, the formulation of monetary policy, and efforts to maintain the stability of the rupiah value.

"His experience in the highest ranks of the BI leadership makes the financial market assess that Destry has the most ready capability to maintain the smooth transition of leadership and maintain investor confidence and the credibility of the central bank without significant turmoil," he said.

Rahma also highlighted Destry's experience in various sectors, ranging from banking, capital markets to state institutions.

"Destry's track record includes a broad combination of the private sector, the capital market, and state institutions. He has a career as Head of Economist at PT Bank Mandiri (Persero) Tbk, Head of Economist at Mandiri Sekuritas, Special Staff to the Minister of Finance, to a member of the LPS Commissioner Board," he explained.

In addition, he added that Destry's involvement in the Financial System Stability Committee (KSSK) was considered to strengthen his ability to carry out cross-sector coordination, especially between government fiscal policies and central bank monetary policies.

Despite having strong experience, Rahma emphasized the importance of Destry to maintain BI's independence if he is appointed as BI Governor.

According to him, the independence of the central bank must remain the main principle in carrying out monetary policy, including when faced with pressure to expand liquidity or printing money to support certain interests.