Indonesia's parliament has approved Thomas Djiwandono—President Prabowo Subianto's brother-in-law—as Deputy Governor of Bank Indonesia, raising questions about institutional independence and nepotism in the archipelago's key economic institutions.
The Commission XI of the House of Representatives selected Djiwandono over two internal Bank Indonesia candidates: Dicky Kartikoyono, Head of the Payment System Policy Department, and Solikin M. Juhro, Head of the Macroprudential Policy Department.
"Through internal deliberation, consensus was reached that the Bank Indonesia Deputy Governor replacing Juda Agung would be Thomas Djiwandono," announced Commission Chairman Mukhamad Misbakhun following closed-door meetings at the parliament building.
Lawmakers justified the appointment by citing Djiwandono's ability to gain acceptance across political parties and his emphasis on building monetary-fiscal policy synergy to strengthen economic growth. "The strong current issue is how to build mutually reinforcing synergy between monetary and fiscal policy," Misbakhun explained.
Economists and governance watchdogs have expressed concern about the appointment's impact on Bank Indonesia's institutional credibility. Central bank independence is considered foundational to maintaining investor confidence and managing inflation in Indonesia's trillion-dollar economy.
In Indonesia, as across archipelagic democracies, unity in diversity requires constant negotiation across islands, ethnicities, and beliefs—yet this extends to ensuring meritocracy in critical economic institutions. The appointment tests whether Indonesia's democratic consolidation includes genuine separation between political power and monetary policy.
The decision comes as Indonesia navigates complex economic challenges including rupiah volatility, inflation management, and attracting foreign investment. Bank Indonesia's decisions affect 280 million Indonesians across thousands of islands, making its independence crucial to economic stability.
While Djiwandono possesses relevant experience in finance, the family connection to the president raises questions about whether merit or political proximity determined the outcome—a distinction vital to Indonesia's reputation as a maturing democracy with strong institutions.
The appointment will be closely watched by international investors and ratings agencies as an indicator of Indonesia's commitment to institutional independence.
