Indonesian President’s Nephew Appointed Central Bank Deputy Governor

Indonesian President Prabowo Subianto’s nephew, Thomas Djiwandono, has been appointed as a Deputy Governor of Bank Indonesia, despite concerns that his emergence could undermine the central bank’s operational independence.

The parliament on Tuesday approved the appointment after it unanimously adopted the decision during a plenary session of the House of Representatives, according to the House’s Deputy Speaker, Saan Mustopa.

Mustopa said lawmakers expected Thomas to discharge his mandate “with integrity and wisdom” and contribute meaningfully to strengthening monetary policy, safeguarding financial stability, and supporting sustainable economic growth.

Thomas’ confirmation followed his endorsement on Monday by the parliamentary commission overseeing financial affairs, which approved him over two other career central bankers.

He is expected to be formally sworn in by the Supreme Court, although the date for the ceremony was yet to be announced.

The appointment has stirred unease among investors, with fears that political ties could compromise the independence of Bank Indonesia. Those concerns contributed to the rupiah sliding to a record low of 16,985 to the US dollar last week, before recovering after the central bank kept interest rates unchanged to stabilise the currency.

The rupiah traded flat at 16,770 to the dollar on Tuesday following the parliamentary vote.

Speaking to reporters after his confirmation, Thomas pledged to uphold the independence of Bank Indonesia, according to local media outlet CNBC Indonesia.

“I reiterate my commitment to maintaining the central bank’s independence, as I stated during my fit and proper test,” he said, adding that alignment between fiscal and monetary policies does not equate to interference.

Addressing market concerns during his screening on Monday, Thomas said his performance in office should be the basis for judgement, noting that he resigned from President Prabowo’s Gerindra Party in December.

He also stressed the importance of synergy between the central bank, fiscal authorities, and other institutions in driving economic growth, while maintaining that such cooperation must not erode institutional autonomy.

“The law governing Bank Indonesia’s independence is very strong,” he said, adding that his appointment followed all legally prescribed processes.

Meanwhile, chairman of the parliamentary finance commission, Mukhamad Misbakhun, said Thomas was approved because he was widely acceptable and possessed the vision to foster coordination between fiscal and monetary authorities.