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View all search resultsHouse drops BI Law amendment, opts for omnibus finance bill
“The amendment of the BI Law has been dropped,” House Commission XI and Legislative Body (Baleg) member from the Indonesian Democratic Party of Struggle (PDI-P), Hendrawan Supratikno, told the Post on Monday. “We are currently focusing on financial sector reform.”
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he House of Representatives has dropped deliberation of a bill that would amend the prevailing Bank Indonesia (BI) Law, three lawmakers have said, as the House shifts focus to an omnibus bill on the financial sector to strengthen the country’s financial system.
The omnibus bill includes some of the regulations previously stipulated in the BI bill, such as mandating the central bank to pursue economic growth and employment, on top of its current mandate to maintain the rupiah exchange rate and price stability, according to a draft dated Nov. 20 obtained by The Jakarta Post.
The bill stipulates that BI will have the duty to determine and implement monetary policy sustainably, consistently and transparently while taking “into account the government’s economic policy”, and to manage and maintain payment systems and to make and implement macroprudential policy in the banking industry in line with the policy-making decisions taken by the Financial System Stability Committee (KSSK).
The KSSK is led by the finance minister and comprises the BI governor, the Financial Services Authority (OJK) chairman and the Deposit Insurance Corporation chairman.
The bill further stipulates that BI will retain its independence in the first two matters, except for specific issues ruled out by the bill.
“The amendment of the BI Law has been dropped,” House Commission XI and Legislative Body (Baleg) member from the Indonesian Democratic Party of Struggle (PDI-P), Hendrawan Supratikno, told the Post on Monday. “We are currently focusing on financial sector reform.”
A Baleg meeting last week had yet to decide on whether to cease the BI bill’s deliberation but six out of nine party factions have agreed to discontinue it.
