Who Will Become Bank Indonesia's Next Governor?
The five-year term of Bank Indonesia Governor Agus Martowardojo will end on 22 May 2018 and therefore it is time to take a look at his potential successors. However, it could very well be that Martowardojo is allowed to have a second five-year term as central bank chief.
According to Law No. 3/2004 regarding the Central Bank, the names of Bank Indonesia governor candidates need to be presented by the Indonesian president to the House of Representatives (DPR) three months before the end of the governor's term, the latest. This means Joko Widodo has less than two weeks to present the names of candidates to the DPR.
Sofjan Wanandi, advisor to Vice President Jusuf Kalla, said four names have already been determined as possible candidates to become the next central bank governor (but more names may be added):
Agus Martowardojo; incumbent Bank Indonesia Governor. He received his higher education at Universitas Indonesia, the State University of New York, Harvard Business School, Stanford University, and Wharton Executive Education. Before Martowardojo moved to the highest central bank position he previously served as Indonesian finance minister (2010-2013) as well as president director and CEO of Bank Mandiri (2005–2010).
In our opinion, chances are big that Martowardojo will be re-elected as Bank Indonesia governor because the central bank's monetary policy during his first term helped to support a deepening of Indonesia's financial markets, safeguarded rupiah stability, while the central bank maintained good relations with the central government as well as with the DPR and Financial Services Authority (OJK).
Bambang Brodjonegoro; currently Indonesia's Minister of National Development Planning. He earned his master's degree and PhD at the University of Illinois at Urbana-Champaign (United States). Previously, Brodjonegoro served as finance minister in Widodo's "Working Cabinet". However, he was replaced by Sri Mulyani Indrawati in a cabinet reshuffle. Under the second Susilo Bambang Yudhoyono administration he served as deputy finance minister.
Chatib Basri; former finance minister in Indonesia and former head of the Investment Coordinating Board (BKPM). Basri received his master's degree and PhD from the Australia National University.
Perry Warjiyo; incumbent Deputy Governor at Bank Indonesia. He obtained his master's degree and PhD from Iowa State University, Ames (USA).
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