Acting BI Governor: Market need not panic after Perry Warjiyo's resignation

Jakarta (ANTARA) - Acting Governor of Bank Indonesia (BI) Destry Damayanti has called on market players to remain calm following Perry Warjiyo’s resignation from the post of BI Governor.

After meeting President Prabowo Subianto at the Presidential Palace complex in Jakarta on Monday, she assured that Bank Indonesia’s policy would remain consistent in safeguarding economic and financial system stability.

“As for the market, we certainly hope there is no need to panic. Why? Because we at Bank Indonesia will continue to carry out our policies just as we have done previously,” said Destry.

According to Destry, BI’s main focus remains maintaining the stability of the rupiah exchange rate as the primary pillar of monetary policy. To that end, the central bank will continue to be present in the market through various stabilisation instruments.

She said interventions would continue to be carried out in the spot market, the non-deliverable forward (NDF) market, and the domestic non-deliverable forward (DNDF) market in order to maintain exchange rate stability.

In addition, BI will continue policies that support economic growth through macroprudential instruments.

In line with the outcome of the Board of Governors Meeting (RDG) in July, Destry added, the central bank will also continue to encourage foreign capital inflows by providing incentives in the form of reduced hedging costs.

“So those policies remain in place, and leadership at Bank Indonesia is exercised collectively and collegially,” said Destry.

Destry added that all members of the Board of Governors will ensure that all the central bank’s duties and mandates continue to run as they should. She also expressed hope that domestic financial market conditions would soon return to stability.

“We certainly also hope that stability in our financial markets will recover and return to normal as before,” she added.