BI to Have Definitive Governor, Rupiah Gets Fresh Wind

Jakarta, CNBC Indonesia - Banking economists have spoken out about the strengthening of the rupiah in recent days, with the Garuda currency now at the psychological level of Rp17,600 per US dollar.

BCA Chief Economist David Sumual said the rupiah’s strengthening was influenced by several sentiments, ranging from the weakening of the US dollar to the sole candidate for definitive Governor of Bank Indonesia (BI), Destry Damayanti.

“Globally, the rupiah’s current movement is influenced by the weakening of the US dollar, caused by sentiment over the increased volume of US Treasury buybacks by the US government, perceptions of US economic risk, and the shift in market expectations from a hike to a hold at the September 2026 FOMC decision. This sentiment is encouraging global investors to invest in non-US dollar assets, including the rupiah,” David told CNBC Indonesia, quoted on Monday (24/8/2026).

Domestically, sentiment surrounding the sole candidate for definitive BI Governor has also helped support the rupiah away from the psychological level of Rp18,000 per US dollar. This is reflected in the decline in risk perception (credit default swap/CDS) and the increase in foreign inflows into Indonesian government bonds (SBN).

“Domestically, the announcement of the definitive BI Governor candidate provides certainty about the direction of the Indonesian economy, and the market tends to respond positively, as seen from the decline in CDS and the increase in foreign inflows into SBN,” David explained.

At the same time, the narrowing of the balance of payments deficit is also providing positive sentiment for Indonesia.

Previously, President Prabowo Subianto officially proposed Destry Damayanti as the sole candidate for Governor of Bank Indonesia (BI) on 12 August. The government considers Destry’s track record and long experience in the financial sector to be the main reasons behind the appointment.

Minister of State Secretary (Mensesneg) Prasetyo Hadi said Destry has strong competence to lead the central bank. In addition to a career spanning decades in economics and finance, Destry has also served two terms as Senior Deputy Governor of BI.

“What is certain is her track record. From her education to dedicating herself for decades in the financial sector,” Prasetyo said at the Presidential Palace Complex, Jakarta, Wednesday (12/8/2026).

According to Prasetyo, Destry’s experience at Bank Indonesia is one of the government’s main considerations in submitting her name to the Indonesian House of Representatives (DPR RI).

“She has also served two terms as Senior Deputy Governor. That is one of the most fundamental reasons, certainly competence,” he said.

For information, the House of Representatives (DPR RI) will conduct a fit and proper test for BI Governor candidate Destry Damayanti on Wednesday, 26 August 2026.

According to information received by CNBC Indonesia, Destry’s fit and proper test schedule will be carried out in a Public Hearing Meeting (RDPU) with the BI Governor candidate by Commission XI of the DPR RI on Wednesday at 10.00 WIB. Chairman of Commission XI of the DPR RI M. Misbakhun confirmed this schedule.

“We have scheduled it according to the results of the internal meeting,” he told CNBC Indonesia, Sunday (23/8/2026).