Indonesia expands central bank mandate to boost growth
Parliament passed a bill requiring Bank Indonesia to support economic growth and job creation. The move aims to help reach a government growth target of 8%.
Indonesia passed legislation on Thursday expanding the mandate of Bank Indonesia to prioritize economic growth and job creation. The bill allows lawmakers to evaluate independent financial regulators and Bank Indonesia as President Prabowo Subianto targets 8% annual growth. Investors view the move as a threat to central bank independence, potentially increasing political interference in monetary policy.
