Shake-up at the Central Bank
The Central Bank of Indonesia experienced a major shake-up. Former Bank Indonesia Governor, Perry Warjiyo, who made a serious effort to be independent, at last had to submit his resignation letter to the President. He was replaced by his Senior Deputy Governor Destry Damayanti. Aida S. Budiman, formerly a Central Bank Deputy Governor, replaced Ms. Damayanti as Senior Deputy Governor, while Ms. Budiman's position was filled by Central Banker Solikin M. Juhro.
In other news, the Central Board of Statistics in Indonesia released its trade balance report for July 2026, which showed a surplus after a deficit in the previous month. The trade balance surplus for July 2026 was $121.9 million, while the previous month’s value was a deficit of $450.5 million. The total trade surplus for the year to date stands at $3,698.9 million, 85.70% lower than the surplus of the previous year, which was $23,773.7 million.
Exports for July 2026 were solid, reaching $26,216.7 million, a rise of 6.05% Y/Y. Cumulative exports from January to July 2026 reached $167,031 million. Exports of palm oil, coal, and iron and steel continued to increase despite high uncertainty in the regulation of those areas. At the same time, imports in July rose by 27.02% Y/Y, reaching $26,094.8 million, with cumulative imports year to date at $163,332.1 million. The supply of raw materials for manufacturing activities remains robust, in line with the development in the real sector. In summary, Indonesia's trade balance for July 2026 reflects continued robust development in the real sector.
The Central Board of Statistics also reported the Consumer Price Index for August, which registered inflation of 0.21%. With that monthly inflation, Y/Y inflation stands at 3.19%. We note that the Central Bank of Indonesia decided to keep its benchmark rate at 5.75% at its most recent policy meeting, held in August.
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