DPR Outlines Key Criteria for BI Governor Candidate, Beyond Monetary Expertise

The House of Representatives (DPR) Commission XI has revealed that there is no information yet regarding the candidate to replace Perry Warjiyo as Governor of Bank Indonesia (BI), with the Senior Deputy Governor currently serving as the interim head of the central bank. Deputy Chairman of Commission XI from the Gerindra Party, Mohamad Hekal, stated that the governor’s position is currently temporary and the candidate remains unknown. “Regarding the figures to be proposed, there has been no discussion to date, because the news of Mr. Perry’s resignation just happened this morning,” Hekal said in a CNBC Indonesia Power Lunch programme on Monday.

However, Hekal disclosed that the candidate for BI Governor must not only understand monetary policy but also grasp macroprudential policy and be able to coordinate with the fiscal authority, namely the Ministry of Finance. “The consideration is certainly in the hands of the president to select the most appropriate names, but in my opinion, the first key is a deep understanding of the macroprudential policies needed to maintain the rupiah exchange rate and also to coordinate and cooperate with the fiscal authority, because monetary matters cannot be separated,” Hekal explained.

He further elaborated that the new BI Governor must maintain harmony between institutions, both monetary and fiscal, so they can synergise to safeguard economic growth and rupiah stability. “The key for the replacement is to be able to maintain harmony between fiscal and monetary authorities,” Hekal concluded.