Indonesia Lawmakers Mull New Central Bank Mandate, Firing Rules

Indonesian lawmakers are considering revisions to the mandate and governance of the country's central bank, Bank Indonesia. The proposed changes include expanding the bank's mandate beyond its current focus on maintaining price stability and supporting economic growth. Additionally, lawmakers are exploring lowering the threshold for dismissing senior Bank Indonesia officials, raising concerns about the central bank's independence. These potential reforms come amid broader discussions about strengthening Indonesia's economic policymaking framework. Proponents argue that a more flexible mandate and easier removal of central bank leadership could enhance the government's ability to respond to evolving economic conditions. However, critics caution that such changes could undermine the central bank's autonomy and its ability to effectively manage monetary policy. The proposed amendments to Bank Indonesia's mandate and governance structure have sparked debate within Indonesia's political and economic circles, with stakeholders weighing the potential benefits and risks of the proposed changes.