Indonesia: Rupiah defense meets leadership transition

Research evidence excerpt

Indonesia: Rupiah defense meets leadership transition

J P M O R G A N Asia Pacific Economic Research

27 July 2026

Indonesia: Rupiah defense meets

leadership transition

We continue to expect BI to hike by another 25bp in

September

• BI Governor Perry Warjiyo has resigned, and the Senior Deputy Governor will Emerging Markets Asia, Economic

serve as acting governor until a new governor is appointed. and Policy Research

• We view FX stability as Governor Warjiyo’s top policy priority and Charnon Boonnuch

acknowledge the uncertainty arising from the leadership transition. (65) 6807 5086

charnon.boonnuch@jpmorgan.com

• We maintain our forecast that BI will hike by at least another 25bp in JPMorgan Chase Bank, N.A., Singapore Branch

September, with a risk of additional tightening if the USD strengthens.

Governor Warjiyo resigns before term expiry

Bank Indonesia (BI) Governor Perry Warjiyo resigned, citing “personal reasons”,

according to the official announcement today.1 The resignation is ahead of the

expiry of his second five-year term in May 2028. By law, the President will

nominate and appoint the new governor with the approval of the House of

Representatives. The timeline remains unclear.

Senior Deputy Governor Destry Damayanti will serve as acting governor until the

new governor is appointed. Ms. Damayanti has been a Senior Deputy Governor

since 2019 and was previously Chief Economist at the state-owned Bank Mandiri

and Economist at Citibank. Her experience suggests scope for policy continuity

and a market-friendly approach, although the new governor’s priorities remain

unclear.

Ms. Damayanti indicated that BI will continue to maintain rupiah stability,

preserve payment-system stability, and contribute to financial-system stability to