Indonesia’s New Central Bank Governor Pledges Rupiah Stability

Source: The Straits Times

 

(Bloomberg) — Indonesia’s incoming central bank governor vowed to ensure the stability of the currency as emerging markets brace for further volatility on the back of rising interest rates in the U.S. and elsewhere.

The Indonesian parliament on Tuesday confirmed Perry Warjiyo, 59, as the next governor of Bank Indonesia following last week’s endorsement of lawmakers from a committee responsible for financial affairs. Warjiyo, who was President Joko Widodo’s sole nominee for the role, will take over from Agus Martowardojo whose five-year term ends in May.

The changing of guard at Bank Indonesia comes at a time when the rupiah faces intensifying pressure, among the worst performers in Asia this year. Warjiyo on Tuesday said the central bank under his watch is set to remain focused on currency stability and would intervene when necessary.

The board would continue with policies to maintain macroeconomic stability including “low inflation and a stable rupiah exchange rate,” Warjiyo told reporters in Jakarta. “At the same time, we will support policies that encourage economic growth,” he said.

Warjiyo, who joined Bank Indonesia more than three decades ago, had been a deputy governor since April 2013. Lawmakers on Tuesday also approved Dody Budi Waluyo as deputy governor.

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