Regulations
Economists believe the new mandate might open the door for political intervention and declining independence of the monetary authority.
Finance Minister Purbaya Yudhi Sadewa (left) hands over a document containing the government's final statement to Deputy House Speaker Sufmi Dasco Ahmad on June 4, 2026, during a plenary session at the legislative complex in Jakarta. (Antara/Rivan Awal Lingga)
Bank Indonesia (BI) has been tasked with a new mandate on job creation in the newly passed law that also expands control over the central bank, which economists say come at a bad time given the wobbly market condition.The House of Representatives in the plenary session on Thursday passed the revision to Law No. 4/2023 on Financial Sector Development and Strengthening (P2SK), which covers various aspects of the financial sector, including the central bank’s mandate.
The legal document is yet to be made public but Mukhamad Misbakhun, chairman of House Commission XI, which oversees financial affairs, confirmed on Thursday that BI’s “mandate is expanded” in the revision.
