The government of President Joko “Jokowi” Widodo wants to establish a new monetary policy board, including the finance minister among its members, with oversight of Bank Indonesia. The move is one of the changes in legislation introduced to Parliament this week.
Advocates say the legislation will ensure the central bank is focused on economic growth and employment. The bank’s current, laser-like focus on keeping the Indonesian rupiah stable was born out of the Asian Financial Crisis of the late 1990s, when the currency lost two-thirds of its value in six months.
Continue read: https://www.afr.com/world/asia/indonesia-moves-against-central-bank-independence-20200901-p55rft