Indonesian president’s nephew appointed to central bank, raising independence concerns
Sign up now: Get insights on Asia's fast-moving developments
After the appointment, Mr Thomas Djiwandono will be formally sworn in by the Supreme Court.
PHOTO: REUTERS
JAKARTA – Indonesia’s Parliament on Jan 27 appointed President Prabowo Subianto’s nephew, Mr Thomas Djiwandono, as a deputy governor of the central bank, in spite of some concerns his installation will undermine the institution’s operational independence.
The decision was unanimously agreed during the House’s plenary session on Jan 27, said deputy house speaker Saan Mustopa.
On Jan 26, a parliamentary commission overseeing finance had endorsed Mr Thomas
“Hopefully this mandate can be carried out with integrity and wisdom also give significant contribution in strengthening monetary policy, maintaining financial stability, and supporting sustainable economic growth,” Mr Mustopa said.
After the appointment, Mr Thomas will be formally sworn in by the Supreme Court, though the timing is still unclear.
Mr Thomas’s nomination had already sparked investor concerns about the independence of Bank Indonesia, driving the rupiah to a record low of 16,985 per US dollar
It later recovered after BI kept rates unchanged in an effort to shore up the currency.
Speaking to reporters after the appointment, Mr Thomas said he would keep Bank Indonesia’s independence, local media CNBC Indonesia reported.
“I would like to reiterate my commitment to maintain the central bank’s independence as I said during my fit and proper test yesterday, aligning fiscal and monetary policies,” he said.
When asked about the market’s concerns during his competency test on Jan 26, Mr Thomas said he can only be judged on his work, adding that he had already resigned from Mr Prabowo’s Gerindra party in December 2025.
He also emphasised the importance of “synergy” between the central bank, fiscal policymakers and other authorities in supporting the country’s economic growth.
But he stressed that nothing should compromise the central bank’s independence.
“The law (which regulates) Bank Indonesia’s independence is very strong,” he said. “Second, I went through all the processes required by the law.”
Mr Mukhamad Misbakhun, the head of the parliamentary commission overseeing finance, said on Jan 26 that Mr Thomas was approved because he was seen as a figure who “can be accepted by all parties” and has the vision of creating synergy between fiscal and monetary policies. REUTERS
