Indonesia’s parliament confirms President Prabowo Subianto’s nephew as a central bank deputy governor, amid concerns over institutional independence.
JAKARTA: Indonesia’s parliament confirmed the appointment of President Prabowo Subianto’s nephew to the central bank’s board of governors on Tuesday.
Lawmakers approved Thomas Djiwandono as a deputy governor of Bank Indonesia, shrugging off concerns about the financial institution’s independence.
The parliament unanimously shouted “agree” to approve Thomas for the position, which was left open after the former deputy governor resigned.
Deputy speaker Saan Mustopa said the parliament congratulated Thomas for being confirmed.
Thomas is expected to swear an oath of service before the Supreme Court at a later date.
The 53-year-old was made deputy finance minister in July 2024 under Prabowo’s predecessor Joko Widodo.
Prabowo put forward his nephew last week along with two other candidates for the deputy governor role.
Indonesia’s currency, the rupiah, slipped to its weakest level on record against the US dollar after Prabowo submitted the three candidates’ names.
When asked about market concerns, Thomas said in a parliamentary commission hearing Monday that “there is no other way than to prove my work.”
He underlined to lawmakers the importance of synergy between policymakers, but added that it should not compromise the central bank’s independence.
Finance Minister Purbaya Yudhi Sadewa told reporters last week the rupiah’s tumble was not a significant concern.
“In percentage terms, the weakening (of the Rupiah) is small compared to previous levels,” he told local media.
He added that the system should remain stable and the economic impact would likely be minimal.
The Southeast Asian archipelago has long struggled against graft and nepotism, with power often concentrated among a small group of political elites.
The bank’s board of governors, which consists of a governor and several deputies, decides its monetary policy including setting key interest rates.
It decided to hold interest rates at 4.75% at a meeting last week.
