Indonesia’s parliament picked Erwin Rijanto to be a deputy governor at Bank Indonesia after he vowed to focus on stabilizing the rupiah.
Lawmakers selected Rijanto in a contest between three executive directors at the monetary authority nominated to replace current deputy governor Halim Alamsyah, whose tenure will end in June. Rijanto gained 42 out of 53 votes, said Fadel Muhammad, head of the parliament’s finance commission, after it questioned the candidates in Jakarta on Monday.
Rijanto will be a member of the policy setting board at Bank Indonesia, which kept its interest rate unchanged for a second month in April. Scope to cut borrowing costs to support growth in Southeast Asia’s largest economy is limited by a current-account deficit that has hurt the rupiah and a pick up in inflation.
Rijanto, 56, joined Bank Indonesia in 1985 and is currently an executive director in financial system surveillance. He told lawmakers he will focus on the rupiah, monetary stability and requiring state enterprises to hedge their debt.
The rupiah is the worst performing currency in Asia this year, and the region’s most volatile.
Rijanto’s first tasks will need to include coordinating with the government and financial regulator to revise a banking law, and to build a monetary policy program to control the volatility of the currency, Muhammad said. Rijanto beat Dody Budi Waluyo and Hendy Sulistiowati to the job, he said.