Caption: President Prabowo Subianto 

JAKARTA – Indonesia’s president has nominated his nephew to join the central bank board, a minister said on Monday, stoking concerns over the financial institution’s independence.

The Southeast Asian archipelago has long struggled against graft and nepotism, with power often concentrated among a small group of political elites.

President Prabowo Subianto has tapped his nephew, who already serves as deputy finance minister, and two other candidates for the next deputy central bank governor after the incumbent’s resignation.

State Secretariat Minister Prasetyo Hadi told a press conference that “several names were submitted” to parliament for consideration, in a list signed off by the president.

“It’s true that one of the names that we have proposed was the deputy finance minister,” said Prasetyo.

The president’s nephew, Thomas Djiwandono, was made deputy minister in July 2024 under Prabowo’s predecessor Joko Widodo.

The next step in the nomination process is a “fit-and-proper” hearing in parliament, said Prasetyo, who did not provide details on the reasons behind the resignation of deputy governor Juda Agung.

The central bank confirmed Juda had submitted his resignation to the president last week.

Spokesman Ramdan Denny Prakoso told AFP that “Bank Indonesia will remain focused on its main tasks of achieving and maintaining the stability of the rupiah’s value, maintaining the smooth functioning of the payment system, and safeguarding the stability of the financial system to support sustainable economic growth.”

The bank’s board of governors, consisting of a governor and several deputies, decides its monetary policy including setting key interest rates.

The central bank is set to announce its latest benchmark policy rates this week.

Prabowo has set an ambitious economic growth target of eight percent by 2029, up from current figures of around five percent. (AFP)