Jakarta. Finance Minister Purbaya Yudhi Sadewa on Monday sought to reassure markets that Bank Indonesia’s independence would remain intact following reports that President Prabowo Subianto’s nephew, Vice Finance Minister Thomas Djiwandono, is set to join the central bank as a deputy governor.

“Central bank independence has nothing to do with personnel changes, unless there is direct government intervention in decision-making, and that has not happened,” Purbaya told reporters after a meeting with the House of Representatives’ Commission XI, which oversees financial affairs.

His remarks came amid market jitters after State Secretary Prasetyo Hadi confirmed that Thomas is among the candidates being considered for a deputy governor role at Bank Indonesia (BI). The rupiah closed 68 points weaker at Rp 16,964 per dollar following the report.

Purbaya also acknowledged reports of a possible swap involving BI Deputy Governor Juda Agung moving to the Finance Ministry, suggesting the changes were being discussed at a level beyond his authority.

Purbaya said he supports Thomas taking on a role at the central bank, arguing that exposure to monetary policy would broaden the vice minister’s experience, which has so far been rooted in fiscal affairs.

“It’s good. He already has experience in fiscal policy, and if he moves into monetary policy, that will round out his background. I support it,” he said.

Addressing concerns that moving senior government officials into the central bank could blur institutional boundaries, Purbaya stressed that BI officials are required by law to operate independently once appointed.

“Once someone enters Bank Indonesia, they are independent. They are no longer part of the government,” he said.

Coordination between fiscal and monetary authorities, he added, would continue through the Financial System Stability Committee (KSSK), a formal forum designed to protect financial stability without undermining each institution’s mandate.

Purbaya also downplayed the recent weakening of the rupiah following news of Thomas’ potential appointment, saying the currency’s movement reflected short-term market speculation rather than a deterioration in economic fundamentals.

“The rupiah depends on economic fundamentals,” he said. “This looks like speculation — people think that if Thomas goes to BI, the bank’s independence will be lost. I don’t think that will be the case.”

Add as a preferred source on Google +