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View all search resultsBI gets job creation mandate under newly passed law
Economists believe the new mandate might open the door for political intervention and declining independence of the monetary authority.
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Finance Minister Purbaya Yudhi Sadewa (left) hands over a document containing the government's final statement to Deputy House Speaker Sufmi Dasco Ahmad on June 4, 2026, during a plenary session at the legislative complex in Jakarta. (Antara/Rivan Awal Lingga)
B
ank Indonesia (BI) has been tasked with a new mandate on job creation in the newly passed law that also expands control over the central bank, which economists say come at a bad time given the wobbly market condition.
The House of Representatives in the plenary session on Thursday passed the revision to Law No. 4/2023 on Financial Sector Development and Strengthening (P2SK), which covers various aspects of the financial sector, including the central bank’s mandate.
The legal document is yet to be made public but Mukhamad Misbakhun, chairman of House Commission XI, which oversees financial affairs, confirmed on Thursday that BI’s “mandate is expanded” in the revision.
BI mandates under the previous law consisted largely of maintaining rupiah stability and controlling inflation “within the framework of supporting sustainable economic growth”.
The new mandate under the revision included the phrase “job creation”, although the exact phrasing remains under wraps. Misbakhun said the mandate “was not something that has never been discussed” among the world’s central banks, pointing out it was not a novel, untested idea.
Economists believe the new mandate might open the door for political intervention and declining independence of the monetary authority.
Misbakhun dispelled the concerns, saying that the new mandate was made to push BI to take more roles in economic growth because “quality growth, theoretically, can create jobs”.
