Chronicle of BI Turmoil Leading to Perry Warjiyo's Resignation

The resignation of Perry Warjiyo from the post of Bank Indonesia (BI) Governor on Monday (27/7/2026) closes a chapter on a series of prolonged upheavals that have shaken the central bank in recent months. Pressure on Warjiyo stemmed not only from the sharp depreciation of the rupiah exchange rate but was also triggered by political dynamics and the polemic surrounding the filling of the deputy governor seat, culminating in open calls for him to step down.

The turmoil began in early 2026 when the rupiah came under sustained pressure against the United States dollar. During the Board of Governors meeting in January, Perry explained that the rupiah’s weakening was influenced by a combination of global and domestic factors. Externally, global economic uncertainty, high US Treasury yields, and capital outflows from developing countries strengthened the dollar.

However, Perry also acknowledged that domestic factors affected market perception. One such factor was the widespread discussion regarding the nomination process for the BI deputy governor position involving Deputy Finance Minister Thomas Djiwandono. According to Perry, the news coverage influenced market sentiment towards the central bank’s stability, although he stressed that the nomination process followed proper governance and did not interfere with BI’s independence.

Thomas Djiwandono has a direct familial relationship with President Prabowo Subianto. His mother, Biantiningsih Miderawati Djojohadikusumo, is Prabowo’s older sister. Thomas’s father is Soedradjad Djiwandono, an economist who served as Governor of Bank Indonesia from 1993 to 1998. Beyond family ties, Thomas also has political and professional connections with Prabowo, having previously served as the Treasurer General of the Gerindra Party, which is led by Prabowo. He was appointed Deputy Finance Minister in 2024 as part of the transition to the Prabowo administration. In January 2026, Prabowo nominated Thomas as Deputy Governor of Bank Indonesia, a nomination approved by the House of Representatives, leading to his inauguration in February 2026.

This relationship was one of the reasons the nomination drew scrutiny. A number of economists and market participants expressed concerns over the independence of Bank Indonesia due to the familial and political closeness to the President. In response, the government asserted that Thomas was selected based on his competence, while Thomas himself stated that he had resigned from the Gerindra Party prior to taking office at BI to avoid conflicts of interest and committed to safeguarding the central bank’s independence.