Bank Indonesia independence questioned as Prabowo nominates nephew to board

Investors have worried that independent monetary policymaking in Southeast Asia’s largest economy might be under pressure as Prabowo targets economic growth of 8 per cent by 2029, ⁠from about 5 per cent now.

Those fears grew after Bank Indonesia (BI) unveiled a new burden-sharing deal last year to fund some government programmes.

Thomas Djiwandono, a deputy finance minister who is a former businessman, would soon face a fit-and-proper test by parliament for the new job, said the two sources, who sought anonymity as they were not authorised to speak to the media.

The US-educated Thomas would replace current BI board member Juda Agung, one of the sources added.

Thomas, as well as Prabowo’s office, declined to comment.