Bank Indonesia's acting governor has shed some light on what the central bank's policy focus might look like if she takes the reins.
Monetary policy would remain focused on maintaining stability while providing room to support economic growth, BI acting Gov. Destry Damayanti said Wednesday at her fit-and-proper test in Indonesia's parliament.
The BI rate would be guided by a preemptive and forward-looking approach to maintain rupiah stability, she said.
BI would strengthen the rupiah through "smart intervention" and optimize market-oriented monetary operations to ensure effective policy transmission and adequate liquidity for the banking system and the real economy, she said.
Born in Jakarta in 1963, Destry has served as BI's senior deputy governor since 2019. If approved by parliament and formally appointed, she would become the first woman to lead Bank Indonesia.
Her nomination is likely to reinforce expectations of policy continuity following the sudden departure of long-serving Gov. Perry Warjiyo, who resigned in July citing personal reasons. Destry has served as acting governor since his departure.
"Given her strong professional reputation and credibility, we believe investors are likely to give her the benefit of the doubt," said Jeffrosenberg Chenlim of Maybank Sekuritas.
Destry enters the role with significant trust capital from the market, although maintaining that confidence will depend on BI continuing to demonstrate policy independence and consistency, he said.