Perry Warjiyo Steps Down as Bank Indonesia Governor, Two Years Early Bank Indonesia Governor Perry Warjiyo has stepped down, roughly two years ahead of his term’s scheduled end in 2028. On its own, a resignation proves nothing about political interference — but it lands just as the 2026 revision of the P2SK Law (Undang-Undang Pengembangan dan Penguatan Sektor Keuangan) has thinned the institutional firewall between BI, the government and Parliament. The question worth watching is not only who succeeds him, but how much room the new architecture leaves for pressure to enter unseen. KEY TAKEAWAYS • Resignation is not proof of intervention — but it arrives after P2SK’s 2026 revision measurably narrowed the institutional firewall separating BI from the government and Parliament. • De jure independence is intact: the law still requires BI to reject interference. What must now be monitored is de facto independence — how that guarantee holds up in practice. • BI’s mandate has broadened well beyond rupiah stability to growth and job creation, widening the scope for BI to be pressured into cutting rates or loosening liquidity. • Ministers may sit in Board of Governors meetings without a vote, and Parliament controls BI’s budget, structure and remuneration — leverage that does not require a formal instruction to exert pressure. • Succession risk is the flashpoint: market concern would intensify sharply if Thomas Djiwandono — the President’s nephew, on the Board for only months — leapfrogs Senior Deputy Governor Destry Damayanti. • The risk to watch is fiscal dominance — monetary policy increasingly bent to accommodate government financing and growth targets rather than inflation and the rupiah. KIWOOM SEKURITAS INDONESIA