Indonesian President Joko “Jokowi” Widodo pledged on Tuesday that the country’s central bank would remain independent, a day after a panel of experts advising parliament recommended that government ministers be given voting rights at policy meetings. In proposals that could amount to the biggest shake-up of the monetary authority in two decades, the panel also suggested economic growth and employment be added to Bank Indonesia’s (BI) mandate among other amendments to Indonesia’s central bank law. Analysts have warned the proposals could raise questions over BI’s independence and Indonesia’s track record of prudent macroeconomic policymaking, although some also said reform was needed to ensure BI could meet new challenges and support Southeast Asia’s biggest economy during the pandemic.
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