On Monday, July 27, Indonesia’s State Secretary Prasetyo Hadi disclosed the resignation during a briefing in Jakarta, where Warjiyo was absent. According to the minister, President Prabowo Subianto accepted the resignation. Destry, now the interim governor, stated that Warjiyo stepped down for personal reasons.
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At 67 years old, Warjiyo was first appointed governor in 2018 by former President Joko Widodo and was reappointed for another five-year term in 2023.
He managed the central bank’s response during the pandemic and was seen as a stabilizing figure, boasting over forty years of experience in central banking.
His departure follows increasing pressure on the central bank to align its policies more closely with the government under President Prabowo, who aimed to elevate annual growth from around 5% to 8% after being elected in 2024.
Earlier this year, Prabowo appointed his nephew as a deputy governor, raising concerns about the bank’s autonomy. In June, the parliament approved a law that broadened the central bank’s objectives to include real sector growth and job creation, granting lawmakers the authority to assess its performance.
Despite these mounting pressures, Warjiyo had publicly endorsed Prabowo’s policies, remarking last year that monetary policy would be “all-out, pro-growth.”
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His resignation comes amid ongoing scrutiny regarding the rupiah’s performance. In May, lawmakers from the House of Representatives’ Commission XI had interrogated him regarding the currency’s decline after it slipped past 17,600 per US dollar.
On June 8, the rupiah hit a record low of 18,171, amplifying its losses for 2026 to over 7% and positioning it as Asia’s weakest currency, affected by rising oil prices and the stronger dollar amidst US tariff concerns.
It has since rebounded to around 17,909, approximately 1.4% above its June low, although year-to-date losses remain in the 6–7% range.
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At its July meeting, Bank Indonesia maintained its benchmark rate at 5.75%, following three rate hikes totaling 100 basis points between May and June.
Warjiyo’s departure concludes an eight-year tenure, leaving Destry to navigate the central bank amid persisting currency pressures and questions about its independence from government influence.
