Economics
Indonesia Draft Law Seeks to Limit Central Bank Autonomy
- New jobs, economic growth could be added to central bank goals
- Draft bill to allow direct bond buying during financial crises
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Indonesia is pursuing another attempt at increasing government influence in the decision-making and operations of its central bank, as well as expanding its ability to fund public debt, according to a draft legislation to be discussed in parliament.
A proposed omnibus financial sector reform bill would require Bank Indonesia to take into account the government’s broad economic strategy when making monetary policy decisions, according to a copy of the bill reviewed by Bloomberg. The central bank’s mandate would also be extended to promoting job creation, supporting sustainable economic growth and keeping stability in the financial system.