Jakarta. The selection of Bank Indonesia's next governor will serve as a referendum on the central bank's independence, with investors scrutinizing not only the successful candidate but also the transparency and credibility of the appointment process, an economist said on Tuesday.

Syafruddin Karimi, an economist at Andalas University, said financial markets would evaluate candidates not only on their academic credentials and professional experience, but also on their perceived independence from political influence, their track record in maintaining macroeconomic stability and their willingness to uphold the central bank's mandate.

"If the next governor is selected through a transparent, competitive and merit-based process, it will help lower Indonesia's investment risk premium, strengthen the rupiah and reduce government bond yields because markets will see continuity in policymaking," Syafruddin said.

Conversely, he warned that a selection process perceived as opaque or overly political could heighten concerns over fiscal dominance, particularly if investors believe the new governor would be inclined to lower interest rates, expand liquidity or support government financing while the rupiah remains under pressure.

"A credible candidate can reduce the nation's cost of capital. A candidate whose appointment creates uncertainty will force the government, companies and households to pay a higher risk premium for years," he said.

Syafruddin urged the government to treat the appointment of the BI governor as a strategic economic decision rather than a political appointment.

Purbaya, Destry Among Names in Discussion
President Prabowo Subianto is currently seeking a successor to Perry Warjiyo, who resigned unexpectedly on Monday.

Names mentioned by analysts include Finance Minister Purbaya Yudhi Sadewa and Senior Deputy Governor Destry Damayanti, who is serving as acting governor.

Asked about the speculation, Purbaya said he remained focused on his duties as finance minister and dismissed recurring rumors linking him to the central bank's top post.

"For me, it's an eternal rumor that never becomes reality," he told reporters.

Before becoming finance minister in 2025, Purbaya served as chairman of the Indonesia Deposit Insurance Corporation (LPS) from 2020 to 2025.

Separately, Shinta Widjaja Kamdani, chairwoman of the Indonesian Employers Association (Apindo), urged the government to complete the appointment process quickly to provide certainty over monetary policy. She also publicly endorsed Destry for the position.

"The priority now is certainty over the direction of monetary policy so we can navigate global uncertainty and changing international trade dynamics," Shinta said in Jakarta.

She said Destry had demonstrated her capability during her tenure at Bank Indonesia and would ensure continuity in monetary policy.

"We already know Destry's track record. She would continue the policies that have been implemented, so there is no need for concern. What we need now is a swift decision," she said.