Apindo: Monetary policy direction crucial during BI leadership transition

Jakarta (ANTARA) - The Indonesian Employers’ Association (Apindo) believes certainty in the direction of national monetary policy is crucial for the business and industrial sectors amid the leadership transition at Bank Indonesia (BI), following the resignation of Perry Warjiyo as BI Governor earlier this week. “Our concern is that certainty in monetary policy direction is very important for us to face various existing challenges, especially with global uncertainty and trade dynamics,” said Apindo Chairwoman Shinta W. Kamdani during a press conference in Jakarta on Tuesday. Shinta further stated that Apindo respects Perry’s decision to step down and appreciates his contributions to the monetary and financial sector. She also reminded that the leadership transition, now temporarily held by Destry Damayanti as acting BI Governor, must maintain market confidence and monetary policy continuity. “What is important now is that this wait-and-see situation requires certainty. Of course, with the interim leadership of Mrs Destry, we already know her performance and she will certainly continue what has been done so far. So we do not need to worry. However, under the current conditions, faster certainty is needed,” she said. Shinta assessed that certainty in monetary policy direction is important so that current geo-economic challenges can be faced with the right approach and strategy. “So far, the key has always been volatility, the rupiah exchange rate, and inflation; these all play a significant role. So this is a very important matter for industry players who are directly connected to these factors,” Shinta said. “But market players will likely observe and reassess to see what happens next. What the leadership transition will look like, perhaps that is something to note,” she added. Previously, Minister of State Secretary Prasetyo Hadi stated that President Prabowo Subianto had accepted the resignation of Bank Indonesia Governor Perry Warjiyo and would follow up according to the mechanisms stipulated in the Bank Indonesia Law. Prasetyo said in a press conference at the Bank Indonesia Governor’s Office in Jakarta on Monday that Perry’s resignation letter was officially received by the government on Sunday (26/7).