Indonesian President Prabowo Subianto has nominated his nephew, Thomas Djiwandono, to join the board of governors of Bank Indonesia, a move that has intensified concerns over the central bank’s independence as the government pursues ambitious economic growth targets.
According to two sources familiar with the matter, Djiwandono, who currently serves as a deputy finance minister, is expected to undergo a parliamentary fit-and-proper test in the coming weeks. If approved, he will replace existing board member Juda Agung. The sources spoke on condition of anonymity as they were not authorised to comment publicly.
The nomination comes at a time when investors are increasingly wary of potential political pressure on monetary policymaking in Southeast Asia’s largest economy. President Prabowo has set a target of achieving 8 percent economic growth by 2029, significantly higher than the current growth rate of about 5 percent.
Concerns about Bank Indonesia’s autonomy deepened last year after the central bank introduced a new burden-sharing arrangement to help finance certain government programmes. Analysts have cautioned that such measures could blur the lines between fiscal and monetary policy.
Djiwandono, a former businessman educated in the United States, has previously participated in at least one Bank Indonesia monetary policy review as a representative of the finance ministry. However, he did not have voting rights at the time. Board members of the central bank hold voting power on key interest rate decisions and broader monetary policy direction.
Neither Djiwandono nor Agung immediately responded to requests for comment, while the central bank’s spokesperson and the chair of the parliamentary panel overseeing senior appointments also declined to comment. President Prabowo’s spokesperson similarly offered no response.
Bank Indonesia is scheduled to hold its next monthly monetary policy meeting later this week. The board, which consists of a governor and several deputy governors, traditionally comprises career central bankers, economists, or former banking executives appointed by the president with parliamentary approval.
Local outlet IDNFinancials earlier reported the planned appointment, noting that Djiwandono could assume the role as early as February, subject to parliamentary clearance. The development also coincides with ongoing discussions in parliament over proposed legislation aimed at strengthening the central bank’s role in supporting economic growth, further fuelling debate over the balance between independence and government influence.
Melissa Enoch
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