Indonesia: Jokowi Backs Central Bank Mandate to Aid Indonesia’s Growth

  • President Joko Widodo is backing a push to expand Bank Indonesia’s mandate to include bolstering the economy, throwing his public support behind a legislative move that some analysts see as risking the central bank’s independence.
  • Bank Indonesia shouldn’t just manage the currency, but also should support sustainable economic growth and job creation, Jokowi, said on 7 Apr 21 in an interview in Jakarta.
  • After a year when Indonesia struggled with its first recession in two decades, the economy is set to grow as much as 7% y/y in 2Q21, he added.
  • “Of course I support Bank Indonesia to add growth and job creation to its mandate,” he said in a discussion at the presidential palace, where anti-virus measures included masks, face shields and clear screens on the table.
  • He added: “Bank Indonesia will remain independent.”
  • Deliberations should continue on financial-sector reform to ensure a quick response by all authorities, including the central bank, during times of crisis, Jokowi said.
  • The discussion hasn’t reached the issue of whether there should be a supervisory board to oversee the central bank and the Financial Services Authority, known as OJK, he added.

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