The Indonesian government stated on the 27th that due to economic hardship and currency depreciation triggered by the Middle East war, the Governor of Bank Indonesia, Perry Warjiyo, has resigned early.
According to AFP, Indonesian State Secretary Pratikno told reporters in Jakarta that President Prabowo had accepted Perry's resignation. Perry had served as Central Bank Governor since 2018, and his second term was originally scheduled to end in 2028.
Perry submitted his resignation on the 25th, citing personal reasons, but did not elaborate. Pratikno stated that Prabowo has expressed his gratitude to Perry and highly praised his dedication in leading Bank Indonesia for nearly seven years. He added that Deputy Governor Dwi D. Damayanti has been appointed as interim governor.
Due to soaring energy costs caused by the war in the Middle East, Indonesia's currency has taken a heavy hit. According to Bloomberg, the rupiah has been Asia's worst-performing currency, having depreciated by about 7% since the outbreak of war.
Indonesia's June Consumer Price Index (CPI) annual growth rate reached 3.34%, with economic pressure continuing to mount, sparking student protests demanding the government stop excessive spending, including a multi-billion dollar free meal program, which has now been scaled back. Students also criticized the government's decision to raise the price of non-subsidized fuel by one-third.