BI Governor's Resignation Could Spark Market Concerns Over Independence

Economist Dipo Ramli of CORE has assessed that the resignation of Bank Indonesia (BI) Governor Perry Warjiyo could influence market perceptions of the central bank’s independence. The change is considered capable of raising questions over the direction of monetary policy as well as the relationship between fiscal and monetary policy.

“I think for the market, perhaps the perception is not good,” Dipo said when contacted by Republika in Jakarta on Monday (27/7/2026).

According to Dipo, the situation has the potential to provoke questions, particularly regarding Bank Indonesia’s independence and the amendment of the Law on the Development and Strengthening of the Financial Sector (P2SK). He considers that the market may see a risk of the fiscal dominance theme strengthening, namely when fiscal policy is deemed more dominant than monetary policy.

“It could raise questions, especially about Bank Indonesia’s independence and this newly amended P2SK Law. The fear is that this reinforces the theme of fiscal dominance, or when fiscal matters become more important than monetary ones,” he said.

Dipo also highlighted the increasing proportion of Government Securities (SBN) held by Bank Indonesia. Based on the latest data he had seen, nearly 30 per cent of SBN are held by Bank Indonesia. This condition, he said, could become a market concern when assessing the independence and position of the central bank in economic policy.

“Especially if we look at recent times, the burden sharing figure has kept rising. In terms of percentage, the latest figure I saw is that nearly 30 per cent of SBN are held by Bank Indonesia,” Dipo continued.

Dipo said market perception will depend heavily on the figure who eventually replaces Perry Warjiyo. He assessed that if the successor is not yet clear and lacks experience in the monetary field, this could further worsen market perception.

“So it really depends on who the replacement is. But I think if it is still unclear and the new person does not have experience in the monetary field, I think market perception will be poor,” he said.