Anggito named LPS chairman, revenue agency plan left hanging

The surprise appointment of Deputy Finance Minister Anggito Abimanyu as chairman of the Deposit Insurance Corporation (LPS) marks a clear break from established selection procedures and casts uncertainty over President Prabowo Subianto’s plan to create a separate revenue collection agency.

Anggito was confirmed by the House of Representatives as LPS chairman for the 2025–2030 term, replacing Purbaya Yudhi Sadewa, who was recently appointed finance minister. The move stunned observers as Anggito emerged from a last-minute recommendation from President Prabowo rather than through the formal selection process run by a panel led by former finance minister Sri Mulyani Indrawati.

That process, which had been underway since April 2025, produced a shortlist of 12 candidates submitted to the President. Prabowo forwarded several names to the House in batches. On May 20, he proposed two LPS commissioner candidates: Doddy Zulverdi of Bank Indonesia (BI) and Farid Azhar Nasution of the LPS. Both were later confirmed by the House, with Doddy as LPS deputy chairman and Farid as commissioner in charge of bank guarantee and resolution programs.

On Aug. 11, Prabowo sent four more names to the House: Dwityapoetra Soeyasa Besar (LPS), Muhammad Iman Nuril Hidayat Budi Pinuji (BPJS Employment Supervisory Board member), Agresius R. Kardiman (Compliance Director at Bank CCB Indonesia) and Ferdinand Dwikoraja Purba (Independent Commissioner at PT Asuransi Jasa Tania Tbk).

But on Sept. 19, the President unexpectedly proposed Anggito, who was not among the 12 names submitted by the selection team. After undergoing a fit-and-proper test on Sept. 22, Anggito was confirmed as LPS chairman alongside Ferdinand, who was appointed commissioner in charge of the policy guarantee program.

This is the first time that LPS commissioners have been elected by the House of Representatives, as mandated under Law No. 4/2023 on the Development and Strengthening of the Financial Sector (UU P2SK). The new law elevates the LPS to equal standing with BI and the Financial Services Authority (OJK) as key financial stability institutions.

Anggito’s nomination serves an exercise of presidential prerogative, an effort to place a trusted aide at the helm of an agency managing some Rp 250 trillion (US$15 billion) in bank deposit guarantees, a fund that grows annually by Rp 25–30 trillion from commercial banks’ contributions. These funds enable the LPS to guarantee deposit repayments in the event of bank closures. Although no major banks have collapsed, LPS reports that, on average, one rural bank (BPR) closes every month. Currently, the agency is liquidating three rural banks, with two others under recovery efforts.

As LPS chairman, Anggito joins the Financial System Stability Committee (KSSK) alongside BI governor Perry Warjiyo, OJK chairman Mahendra Siregar and Finance Minister Purbaya.

A veteran economist, Anggito has held multiple government roles. He led the Fiscal Policy Agency (BKF) at the Finance Ministry from 2006 to 2010, resigning after an administrative snag derailed his appointment as deputy finance minister. From 2012 to 2014, he served as director general of haj and umrah affairs. Under President Joko “Jokowi” Widodo, he was appointed in 2017 as head of the Hajj Financial Management Agency, later in 2022 resigning following a corruption scandal that implicated then-religious affairs minister Suryadharma Ali. He was subsequently nominated for the Supreme Audit Agency but failed to clear the House’s selection process.

Prabowo reportedly had envisioned Anggito as the future head of a new revenue collection agency – separate from the Finance Ministry – intended to fulfill one of his key campaign promises to raise Indonesia’s tax ratio. However, resistance from Sri Mulyani was said to have delayed the plan, leading Prabowo to appoint Anggito as one of her deputies instead.

With Sri Mulyani’s departure from the cabinet, some observers expected Prabowo to revive his revenue agency initiative with Anggito at its helm. But his assignment to LPS suggests that the long-promised agency may once again be slipping out of reach.

Finance Minister Purbaya has hinted that the establishment of a revenue agency remains an option but stressed that it would depend on stability in the fiscal environment. For now, he appears to be focusing on optimizing state revenue through taxes and duties, keeping the creation of a new agency on the table only if results fall short of expectations.

Whether Prabowo will proceed with his plan – and whether Anggito might still play a role in it – remains uncertain. For now, the President’s decision to install one of his men at the LPS strengthens his influence over a key financial stability body but leaves one of his most ambitious reform pledges in limbo.