Regulations
The government and the House of Representatives are scrambling to pass a bill that will give Bank Indonesia (BI) a new mandate on job creation, which economists say could weaken the central bank’s independence.
The logo of Bank Indonesia (BI) is seen in front of the central bank's building in Jakarta. (JP/Rafaela Chandra)
The government and the House of Representatives are scrambling to pass a bill that will expand Bank Indonesia’s (BI) responsibility beyond monetary stability to ensuring a strong labor market, a move economists say could weaken the central bank’s independence.Mohamad Hekal, deputy chairman of House Commission XI which oversees financial affairs told The Jakarta Post on Thursday that lawmakers had proposed to include a new job creation mandate in a revised financial sector law but noted the deliberation process with the government was “not yet done”.
Fauzi Amro, another deputy chairman of the commission, replied “not there yet” when the Post asked on Thursday for confirmation whether BI’s tasks would be expanded to include an employment goal next to inflation control, similar to the dual mandate of the United States Federal Reserve (Fed).
