JAKARTA – Market participants have proactively anticipated potential shifts in the central bank’s stance, adopting a wait-and-see approach amid the ongoing policy deliberations at Bank Indonesia (BI). This insight comes from Maximilianus Nicodemus, also known as Nico, the Associate Director at Pilarmas Investindo Sekuritas.
Currently, Bank Indonesia is conducting its Board of Governors Meeting (RDG) to determine the nation’s benchmark interest rate. Concurrently, the institution is also navigating a significant leadership transition, with the process for selecting a new BI Deputy Governor set to enter its fit and proper test phase before the Indonesian House of Representatives (DPR RI).
“So far, if we observe the situation, particularly concerning the outcomes of the BI RDG, we believe everything is quite clear. Especially given the recent rupiah weakening, we are confident that BI will maintain its current interest rate level,” Nico stated in Jakarta on Tuesday, January 20, 2026.
Regarding the impending change in the BI Deputy Governor’s position, Nico suggests that this transition is unlikely to exert any significant influence on the Indonesian stock market. He believes the market has already factored in such developments.
President Prabowo Subianto has proposed three candidates for the Deputy Governor role through a presidential letter (surpres): Thomas Djiwandono, Dicky Kartikoyono, and Solihin M Juhro. Their qualifications will now be scrutinized by the DPR RI.
“Should Mr. Thomas Djiwandono be appointed to a higher position, as long as he possesses the relevant competence for the field, we believe this will not inherently affect the direction of monetary policy formulation,” Nico elaborated, underscoring the importance of individual qualifications.
Nico affirmed his confidence that Bank Indonesia exercises meticulous care and selectivity in managing leadership changes within its institutional environment. “We are also convinced that BI has already undertaken a thorough process of selection, vetting, and screening to identify candidates capable of steering Bank Indonesia forward with pre-emptive and forward-looking strategies,” he added, highlighting the central bank’s strategic foresight.
According to Nico, market participants have a deep understanding of the central bank’s characteristics and have already prepared contingency plans in anticipation of upcoming policy directions. Consequently, he foresees continued stability in the Indonesian stock market despite these dynamics. “The market has long understood the characteristics of BI’s policy approach. Since these have been projected, we believe the stock market will remain relatively stable,” Nico remarked.
Furthermore, Nico pointed to Indonesia’s robust domestic economic fundamentals and the promising outlook for economic recovery in 2026 as crucial factors underpinning the stability of the stock market. “We assess Indonesia’s fundamentals as strong, and the prospect of economic recovery remains intact. There is considerable expectation that the Indonesian economy will be resilient and capable of recovery,” he said.
In line with this assessment, data from the Indonesia Stock Exchange (IDX) on Tuesday, January 20, 2026, at 3:25 PM WIB showed the Jakarta Composite Index (IHSG) trading stably. It recorded a gain of 15.58 points, or 0.17 percent, reaching 9,149.45.
Previously, BI had confirmed that Juda Agung submitted his resignation as Deputy Governor to the President of Indonesia, effective January 13, 2026. This has set the stage for the current selection process.
Meanwhile, State Secretary Minister Prasetyo Hadi confirmed that the government has dispatched the presidential letter to the DPR RI, officially initiating the fit and proper test stage for the prospective BI Deputy Governors. The three proposed names are indeed Thomas Djiwandono, Dicky Kartikoyono, and Solihin M Juhro.