The bill aims to boost economic growth and enhance global competitiveness at a time when the country is facing pressure from high global oil prices.
JAKARTA: Indonesia’s parliament passed a bill Thursday expanding the central bank’s role to include responsibility for economic growth and allowing lawmakers to evaluate its performance.
As the rupiah plummeted to a historic low against the dollar, the house of representatives gave the green light for a legislative amendment that has raised alarm bells over central bank independence. On Wednesday, finance minister Purbaya Yudhi Sadewa told parliament the amendment was aimed at boosting economic growth and enhancing global competitiveness at a time the country is facing multiple pressures from high global oil prices.
“It’s not just about exchange rate stability or just about inflation. It’s also about paying attention to economic growth and creating jobs,” he said. Parliament will now be tasked with evaluating the performance of the central bank with its new, expanded mandate as well as the Indonesia Deposit Insurance Corporation and Financial Services Authority . The LPS is an agency tasked with guaranteeing bank deposits and maintaining banking system stability, while the OJK is the country’s financial regulator.
Under the amendment, the institutions will be obligated to follow parliament’s recommendations.
Economic Growth Financial Regulation Indonesia Central Bank Indonesian Economy Inflation Control Job Creation Monetary Policy Parliament Oversight Rupiah Weakness
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Indonesia's Trade Surplus Shrinks to Six-Year Low as Inflation RisesIndonesia recorded its smallest trade surplus in six years in April, as both exports and imports rose sharply. Inflation accelerated to 3.08% in May, driven by higher food and transport costs, nearing the upper limit of the central bank's target range. The weak rupiah and elevated global oil prices contributed to the trends.
Read more »
Indonesia Gojek founder warns of investor concerns in graft defence pleaJune 2 (Reuters) - When a euphoric Lionel Messi lifted the World Cup at the Lusail Stadium in Qatar at around 9 p.m. on December 18, 2022, he finally had nothing left to prove.
Read more »
National shuttler Leong Jun Hao stuns world No. 11 Naraoka to reach Indonesia Open second roundKUALA LUMPUR, June 2 — National men’s singles shuttler Leong Jun Hao pulled off an upset by defeating world number 11 Kodai Naraoka of Japan in the opening round of the...
Read more »
Leong Jun Hao Upsets Kodai Naraoka to Advance in Indonesia Open; Malaysian Doubles Pairs Mixed ResultsMalaysian shuttler Leong Jun Hao defeated world number 11 Kodai Naraoka in straight sets at the Indonesia Open, advancing to the second round. Other Malaysian results included wins and losses in doubles categories, with top pairs Aaron Chia-Soh Wooi Yik and Pearly Tan-M. Thinaah yet to play.
Read more »