The Indonesian House of Representatives’ Commission XI has approved Destry Damayanti to become Governor of Bank Indonesia (BI) for the 2026–2031 term, following a fit-and-proper test conducted at the House on 26 August. The decision was reached by deliberation and consensus on 27 August. A House plenary session, scheduled for 1 September, must still confirm the appointment before it becomes binding.
Destry has served as Acting Governor of Bank Indonesia since late July following the voluntary resignation of Perry Warjiyo on 25 July. President Prabowo Subianto subsequently nominated Destry as the sole candidate for the governorship in a presidential letter submitted to the House on 10 August. Commission XI also approved Aida S. Budiman as Senior Deputy Governor and Solikin M. Juhro as Deputy Governor for the 2026–2031 term.
The leadership transition brings several senior officials from within the central bank into new positions. Destry has served on BI’s Board of Governors since 2019 and was reappointed for a second five-year term as Senior Deputy Governor in August 2024. Before joining BI, she held positions including Chief Economist at Mandiri Sekuritas and Bank Mandiri, Chair of the Economic Task Force at the Ministry of State-Owned Enterprises, and member of the Board of Commissioners of the Indonesia Deposit Insurance Corporation (LPS). She holds an economics degree from the University of Indonesia and a Master of Science in Regional Science from Cornell University.
During her fit-and-proper test, Destry presented a policy agenda centred on maintaining stability while supporting sustainable economic growth. She outlined three missions: maintaining stability as the foundation for growth, contributing to sustainable economic growth, and strengthening cooperation with stakeholders. She also presented five strategic initiatives covering BI’s policy mix, foreign-exchange-flow policies, inclusive and sustainable finance, institutional governance and innovation, and broader policy coordination.
Destry also addressed the independence of the central bank during the parliamentary hearing. Cooperation with the government, she said, would continue within the respective mandates of each institution. “Synergy does not mean we lose our independence,” she said, as quoted by ANTARA. She explained that BI would continue to use a combination of monetary, macroprudential, payment-system and supporting policies rather than relying on a single instrument to maintain stability and support economic activity.
Her statements during the vetting process also indicated continuity in BI’s monetary-policy framework. Destry said policies that had worked under the previous leadership would continue, while areas requiring improvement would be adjusted. During its latest Board of Governors Meeting on 18–19 August, with Destry serving as acting governor, BI maintained the BI Rate at 5.75%, the Deposit Facility rate at 4.75% and the Lending Facility rate at 6.50%. BI said the decision was aimed at strengthening rupiah stability amid global volatility, maintaining inflation within its target of 2.5% ±1% in 2026 and 2027, and supporting economic growth.
Foreign-exchange management was another focus of Destry’s presentation. She said BI intends to strengthen the monitoring of foreign-exchange flows through more granular digital supervision and supervisory technology, or suptech. The proposed approach includes a refocusing and revitalisation of BI’s foreign-exchange-flow policies, including measures aimed at identifying under-invoicing. Destry said such monitoring would require data and coordination involving multiple institutions.
She also highlighted the role of deeper domestic money and foreign-exchange markets. According to Destry, these markets are used by BI as part of its policy mix to support rupiah stability, attract capital and provide financing for the economy. BI has used measures including incentives and lower hedging costs to encourage capital inflows into instruments such as Bank Indonesia Rupiah Securities (SRBI) and government bonds (SBN).
The policy discussion comes as Indonesia continues to manage changes in its external balance. The country’s current account deficit widened to USD 12.5 billion, equivalent to 3.3% of GDP, in the second quarter of 2026 from USD 3.6 billion, or 1.0% of GDP, in the first quarter. BI attributed the increase partly to a wider oil and gas trade deficit, a smaller non-oil and gas trade surplus and higher primary-income payments. At the same time, the capital and financial account recorded a USD 12.0 billion surplus, supported by increased direct and portfolio investment inflows.
During her parliamentary hearing, Destry identified stronger exports as one area requiring attention. She noted that Indonesia’s current account continues to record deficits in services and primary income, making the performance of goods exports relevant to the country’s external position. Direct investment has continued to provide relatively stable financing, while she also highlighted the need to maintain portfolio investment flows.
Inclusive and sustainable finance also forms part of the policy agenda presented to lawmakers. Destry said BI would continue strengthening macroprudential policies supporting inclusive financing and further develop its sustainable-finance framework. This includes instruments and methodologies for measuring emissions and carbon that can be used by companies and financial institutions.
Indonesia’s economy grew by 5.29% year-on-year in the second quarter of 2026, following growth of 5.61% in the first quarter. BI currently forecasts economic growth of between 4.9% and 5.7% for the full year. In August, the central bank said domestic activity remained supported by government consumption and investment while noting that export performance needed to be strengthened.
Destry’s appointment remains subject to confirmation at the House plenary session. Following that stage and the formal appointment process, she is expected to lead Bank Indonesia for the 2026–2031 term together with the newly approved senior deputy governor and deputy governor.
