KONTAN.CO.ID - JAKARTA. Indonesia's parliament on Tuesday appointed President Prabowo Subianto's nephew, 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 Tuesday, said Saan Mustopa, the House's deputy speaker. On Monday, a parliamentary commission overseeing finance had endorsed Thomas as the new deputy governor for Bank Indonesia, eliminating two other career central bankers.
Baca Juga: US Stock Index Futures Slip with Big Tech Results, Fed Decision on Radar "Hopefully this mandate can be carried out with integrity and wisdom and to also give a significant contribution in strengthening monetary policy, maintaining financial stability, and supporting sustainable economic growth," Mustopa said. After the appointment, Thomas will be formally sworn in by the Supreme Court, though the timing is still unclear. Thomasâ nomination has sparked some investor concerns about the independence of Bank Indonesia, driving the rupiah to a record low of 16,985 per U.S. dollar last week. It later recovered after BI kept rates unchanged in an effort to shore up the currency. The rupiah was unchanged on Tuesday after the vote at 16,770 to the U.S. dollar. Speaking to reporters after the appointment, Thomas said he would keep Bank Indonesia's independence, local media CNBC Indonesia reported.
Baca Juga: Indonesian Lawmakers to Approve New Central Bank Board Member "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 Monday, Thomas said he can only be judged on his work, adding that he had already resigned from Prabowo's Gerindra party in December. 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.
Baca Juga: Death Toll from Landslide in Indonesia's West Java Rises to 17 "Second, I went through all the processes required by the law." Mukhamad Misbakhun, the head of the parliamentary commission overseeing finance, said on Monday that Thomas was approved because he was seen as a figure who "can be accepted by all parties" and has the vision to create synergy between fiscal and monetary policies.
