Indonesia’s President Prabowo Subianto’s nephew, Thomas Djiwandono, has received approval from a key parliamentary committee to join the central bank’s board as a deputy governor. This nomination has sparked worries about Bank Indonesia’s independence. Thomas, currently a deputy finance minister, was backed by the finance commission, putting him ahead of two other candidates who are experienced central bankers.

The rupiah had hit a record low of 16,985 per dollar last week after Thomas’ nomination was announced, but recovered after Bank Indonesia kept interest rates unchanged. Thomas emphasized that his role would strengthen synergy between the central bank and government without compromising BI’s autonomy, protected by law.

He believes coordination between monetary and fiscal policymakers can boost economic growth, aligning with President Prabowo’s goal to increase growth to 8% by 2029 from the current 5%.