Growth Needs Competitive Interest Rates: Thomas Djiwandono

JAKARTA, Investortrust.id — Deputy Finance Minister Thomas Djiwandono says Indonesia’s economic growth needs support from competitive interest rates as he secures unanimous backing from the House of Representatives on Monday, Jan 26, 2026 in Jakarta to become deputy governor of Bank Indonesia, a move expected to strengthen policy coordination and market confidence. He said growth must be accompanied by equity and national stability.

Thomas said sustainable development rested on three pillars: economic growth, equitable development, and stability. He said these objectives could only be achieved through strong coordination between fiscal policy, monetary policy, and the financial sector.

“To translate high economic growth, we need synergy between fiscal policy, monetary policy, and the financial sector, including creating sufficient liquidity for economic activity,” Thomas said during his fit and proper test at Commission XI of the House of Representatives.

He said such coordination was needed to keep interest rates competitive and to encourage financial institutions to support business expansion, particularly micro, small, and medium enterprises. He added that stronger lending appetite would broaden the growth base.

Thomas said equitable development could be pursued primarily through the state budget, while national stability depended on coordination between Bank Indonesia and the government. He pointed to inflation control and food price stability as key to protecting purchasing power.

“For me, this policy synergy does not reduce the independence of each institution,” Thomas said. He added that the legal framework already provided a solid foundation for cooperation.

Thomas’s Familial and Political Background

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Thomas comes from a prominent economic and political family in Indonesia. He is the son of J. Soedradjad Djiwandono, a former governor of Bank Indonesia who served from 1993 to 1998.

Thomas is also the nephew of President Prabowo Subianto, as his mother, Biantiningsih Miderawati, is Prabowo’s sister. His family lineage includes R.M. Margono Djojohadikusumo, the founder of Bank Negara Indonesia, making Thomas part of a multigenerational economic policymaking family.

Lawmakers said this background gives Thomas strong political legitimacy and access across institutions, while stressing that Bank Indonesia operates under a collective and collegial system that preserves its independence.

House Commission XI chairman Mukhamad Misbakhun said all parliamentary factions agreed to endorse Thomas as deputy governor of Bank Indonesia following internal deliberations. He said the decision would be brought to a plenary session on Tuesday, Jan 27, 2026 for formal approval.

“Mr Thomas is a figure accepted by all political parties,” Misbakhun said after leading the hearing. He said Thomas’s appointment would strengthen the political solidity of the central bank and boost market trust.

Misbakhun said Thomas’s political standing would reinforce coordination within Bank Indonesia and across state institutions. He stressed that trust was a critical asset for the central bank’s credibility.

“Trust is what we gain, and it will strengthen Bank Indonesia’s solidity,” he said.