The Indonesian government announced on Monday, July 27, 2026, that Perry Warjiyo has resigned as governor of Bank Indonesia, citing personal reasons that were not publicly disclosed. President Prabowo Subianto approved the resignation amid prolonged market turmoil.

Warjiyo's departure surprised financial markets, causing stocks and the rupiah to decline and raising investor concerns about the central bank's independence in Southeast Asia's largest economy. Analysts view the resignation as a significant test for the institution's autonomy.

Following Warjiyo's resignation, the position is expected to be filled by the Senior Deputy Governor. However, some analysts have expressed unease about the potential appointment of Thomas Djiwandono, a deputy governor and nephew of President Prabowo Subianto.

In recent months, Bank Indonesia has raised its policy rate by a total of 1%, including a 0.5 percentage point hike that exceeded market expectations, in response to economic pressures such as Indonesia logging its first trade deficit in six years and an unsettled banking sector.

Meanwhile, Japan's Prime Minister Takaichi's approval rating dropped 10 points to 58% in a Nikkei poll, reflecting political shifts in the region.

Sources