KONTAN.CO.ID - JAKARTA. Indonesia's central bank governor said on Tuesday there was no government plan to undermine his institution's independence as parliament prepares to debate a bill that would widen the central bank's mandate. The bill awaiting parliamentary debate would expand the central bank's mandate to include economic growth and employment, in addition to price stability. It also includes proposals to overhaul banking supervision. "There is no, in my understanding, no plan from the president himself to change the independence of the central bank," Bank Indonesia (BI) Governor Perry Warjiyo said during a call with investors.
The rupiah had weakened earlier this month after President Joko Widodo told Bloomberg News he supported the widening of the central bank's mandate, amid a broader sell-off in higher risk assets in the past two months due to rising U.S. Treasury yields. Markets were concerned the move would erode the central bank's independence. Commenting on the proposed additional mandate, the governor said the central bank had already considered supporting economic growth when formulating its policy. Baca Juga: Indonesia's central bank keeps interest rates steady The discussion on the legislation has not begun, he said. Warjiyo said the draft bill that has been reported by media was "not complete" and the central bank was still discussing it with the government.
