Indonesian President Prabowo Subianto has nominated his nephew to join the central bank’s board of governors, two sources told Reuters, amid growing concern about its independence as the government seeks more support for ambitious economic targets.
Investors have worried that independent monetary policymaking in Southeast Asia’s largest economy might be under pressure as Prabowo targets economic growth of 8% by 2029, from about 5% now.
Those fears grew after Bank Indonesia unveiled a new burden-sharing deal last year to fund some government programmes.
Thomas Djiwandono, a deputy finance minister who is a former businessman, will soon face a fit-and-proper test by parliament for the new job, said the two sources, who sought anonymity as they were not authorised to speak to media.
The U.S.-educated Djiwandono will replace current BI board member Juda Agung, one of the sources added.
Djiwandono, Agung, the central bank’s spokesperson, and the chairman of a paliamentary panel overseeing assessments for top central bank leadership did not immediately respond to requests for comment.
Source: Reported by special correspondent of Pacific Geopolitical Research Association.