Govt Not To Influence Bank Indonesia
JAKARTA, May 8, 2015 – Indonesian fiscal authority is committed not to influence Bank Indonesia in deciding monetary policy, including the decision on BI rate.
Coordinating Minister for Economic Affairs, Sofyan Djalil, emphasizes that the central bank has its own regulation, so the government cannot and may not intervene monetary authority. “We cannot urge BI, it has its own regulation to abide by, we will still coordinate, but we are not allowed to influence it,” he said.
Though GDP growth only reaches 4.71% in Q1/2015, Sofyan said the government cannot intervene the bank’s duty to maintain monetary stability.
This also denies statement by Vice President Jusuf Kalla asking BI to lower interest rate.
“Actually the current BI Rate is a bit loose from that in last year, slowly, it will decrease,” he said in IIF Asia Financial Summit 2015, Thursday (5/7).
Following the statement by Vice President, Governor of Bank Indonesia, Agus DW Martowadojo, emphasized the central bank will not be intervened by the government in terms of monetary policy.
“We work with the government, but this does not mean that BI is intervened, please just think that I would not be intervened,” he said, Friday (5/8).
He said monetary authority will stand on tight bias and it would only change based on economic data. Read more..