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Hipmi: BI’s Authority Must Be Expanded and Reinforced

Jakarta -The Central Executive Board of the Indonesian Young Entrepreneurs Association (BPP Hipmi) supports the plan of Bank Indonesia (BI) elected Perry Warjiyo who wants to revise the BI Law no. 23/1999.

BPP Chairman Hipmi Bahlil Lahadalia said that the authority of BI should be strengthened to encourage economic growth and national development.

“Hipmi supports the new BI Governor plan. This is Hipmi’s old aspiration, after we have studied for quite some time, BI’s authority is not only expanded but also strengthened to produce a proper growth and development policy, “Bahlil said in an official statement received on Wednesday (4/4/2018).

Bahlil said the revision of Law no. 23/1999 on Bank Indonesia is time to be implemented by the central bank and parliament considering the age of the law has been long enough that almost 2 decades.

“We see it is time for adjustments. The context, once the law was made when our economy is still overshadowed instability and crisis 1998. Do not let any articles that are not relevant anymore when the economy is stable as now, “he said.

Bahlil acknowledged that since the establishment of the Financial Services Authority, BI’s authority has focused more on macroprudential policy. BI has the task of issuing monetary policy to safeguard inflation, interest rates and rupiah stability, manage foreign exchange reserves and the national payment system.

“But there is room in the macroprudential authority of BI is to encourage economic growth so that industry can be more enthusiastic. That’s what needs to be explored, “he explained.

Bahlil is optimistic that the revision of BI authority strengthening will not overlap with the OJK design microprudential supervision policy.

He said the supervision of BI in macroprudential areas, while OJK conduct supervision in microprudential areas. In addition, both institutions are also encouraged to improve coordination.

Previously, the elected BI Governor said it needed greater authority to increase the role of the financial sector in the Indonesian economy. Not only prostability, but the existing regulations must be economic growth.

Therefore, Perry Warjiyo plans to revise Law no. 23/1999 on Bank Indonesia to obtain greater authority is with the Act is considered to limit the role of BI in accelerating development.

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Written by DI

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