Indonesia’s new finance laws expand central bank’s mandate

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Indonesia’s parliament voted to approve financial legislation that widens the central bank’s mandate to include supporting sustainable economic growth and formalize its debt monetization operations. | Reuters

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However, politicians can be nominated for BI’s top jobs after resigning from their party, sources involved in the deliberation said. The legislation underlines that the central bank remains an independent agency, but it widens BI’s mandate to also include maintaining financial system stability in order to support sustainable economic growth, on top of the current sole mandate of keeping the rupiah’s value stable.

 

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