Sources say that Indonesia’s Finance Minister, Sri Mulyani, is one of the candidates for the top job at the central bank.
(Reuters) – JAKARTA -Five sources with knowledge of the situation say that Sri Mulyani Indrawati, who is the finance minister of Indonesia, is one of the people being considered to be the next head of the central bank. The current head’s term ends in May.
The former managing director of the World Bank is a well-known figure in the world of finance. He has been finance minister twice, the most recent time starting in 2016.
People have praised her for changing the way taxes are done and for helping Southeast Asia’s largest economy through the pandemic.
But Yustinus Prastowo, a special assistant to Sri Mulyani, said that her possible nomination as the new governor of the Bank Indonesia (BI) was not being talked about in the finance ministry.
Four sources told Reuters that the current head of the BI, Perry Warjiyo, was also being considered for a second and final term. They spoke on the condition of anonymity because the matter has not been made public.
Sources also said that Purbaya Yudhi Sadewa, who is the head of the Indonesia Deposit Insurance Corporation, and Destry Damayanti, who is the senior deputy governor of BI, could be good choices.
A lawmaker in the coalition that the president leads said that Sri Mulyani was likely to get the job. But another source said that the process of making a short list was still going on.
The source said, “It’s not down to one name yet.”
When Reuters asked Purbaya about his possible candidature on Monday, after local news sites Detik.com and Kumparan.com had reported the names, he refused to say anything.
The office of President Joko Widodo and other people named by the sources did not answer requests for comment.
The current governor, Warjiyo, will finish his five-year term on May 24. He has been a central banker his whole life and has been a big part of changing the way BI handles its money.
He has been in charge of BI’s response to the pandemic, which included some unusual steps like buying bonds directly from the government instead of only on the secondary market.
Since August, the BI has raised interest rates by 225 basis points as part of the central bank’s process of tightening after the pandemic.
According to a recently changed law about the central bank, the president must give at least one name to parliament by February. This gives lawmakers time to do a “fit and proper” test on each candidate before choosing the best person for the job.