Indonesia draft bill seeks govt role in central bank

Bank Indonesia’s independence is enshrined in the 1999 Central Bank Act.

JAKARTA: Indonesia’s parliament will consider possible sweeping changes to laws that could give the government more authority over the central bank.

A draft bill prepared by a panel of experts and presented to the parliament’s Legislation Committee on Monday proposed setting up a five-member monetary board, led by the finance minister, to help Bank Indonesia determine policy.

It also recommended that the central bank’s mandate be expanded to include supporting economic growth and jobs, and that ministers be included on the current board that sets interest rates.