Indonesia's central bank must enhance role for growth

JAKARTA: A top Indonesian lawmaker has called for a stronger role for the central bank to help achieve the government's economic growth target of 8 percent by 2029. Mukhamad Misbakhun, who leads a parliamentary committee, spoke at a capital markets forum in Jakarta on Friday. Misbakhun emphasized that the government aims to raise growth from the current rate of 5 percent. He suggested that by enhancing the collaboration between the finance ministry and Bank Indonesia, the country could better support its economic ambitions. He described this partnership as a "strong national combination." While he did not provide specific details on how to strengthen the central bank's role, he mentioned having discussions with Bank Indonesia officials recently. Indonesia's economic growth has been around 5 percent in recent years. Parliament is currently reviewing a law related to the financial sector. This follows a Constitutional Court decision earlier this year, which requires lawmakers to reconsider the independence of the state deposit insurer agency. Some lawmakers have expressed concerns that this review could also impact the central bank's role. However, Governor Perry Warjiyo has indicated that no significant changes are expected regarding the central bank's mandate, which includes supporting sustainable economic growth and ensuring price stability.