Indonesia Lawmakers Mull New Central Bank Mandate, Firing Rules

Indonesian lawmakers are weighing changes to Bank Indonesia that include a broader mandate and a lower bar for removing senior officials, heightening concerns about the central bank’s independence.

The potential move sparked a slump in bonds and the rupiah as investors digested the latest sign that President Prabowo Subianto’s government may seek to strengthen its grip on the levers of the country’s economic power, across monetary, fiscal and natural resources.