December 4, 2025 | 07:12 am
TEMPO.CO, Jakarta - The Chair of Commission XI of the House of the Representatives, Mukhamad Misbakhun, said that the revision of Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (P2SK) will restore the role of Bank Indonesia (BI) to that of the New Order era. In the P2SK revision, BI will receive a new mandate to drive economic growth and job creation.
'The central bank will be like the central bank in the New Order era, with a tangible role in economic growth and job creation,' said Misbakhun at the Financial Forum event at the Indonesia Stock Exchange on Wednesday, December 3, 2025. He believes that BI's role in driving economic growth is necessary to achieve the 8 percent growth target.
Nevertheless, Misbakhun claims that the P2SK revision will not disrupt the central bank's independence. He mentioned that the P2SK revision is still awaiting instructions from the DPR leadership. The DPR has received the List of Inventory of Problems (DIM) from the government.
In the same event, Senior Deputy Governor of BI, Destry, stated that the central bank has been given a new mandate to drive economic growth and job creation. Previously, BI had three mandates, namely maintaining the stability of the rupiah, financial system stability, and payment systems. However, according to Destry, all of these are aimed at supporting sustainable economic growth.
With the P2SK revision, Destry mentioned that sustainable economy becomes more specific, focusing on job creation. 'This makes it more real for us that BI should also be more involved in the real sector,' he said.
Quoting BI's website, the central bank was once mandated as a development agent and the state treasury holder through Law Number 13 of 1968. Bank Indonesia was later established as an independent central bank through Law Number 23 of 1999 concerning Bank Indonesia. This law stipulates BI's single goal of achieving and maintaining the stability of the rupiah's value. The goal as a development agent was removed.
Meanwhile, Economist at the Institute for Development of Economics and Finance, Ariyo Irhamna, said that the new mandate erodes BI's independence and triggers a number of risks. One of them is the difficulty in detecting the causes of real growth not being achieved, whether it is due to Bank Indonesia or fiscal and structural factors. 'This could weaken BI's credibility,' said Ariyo, on Monday, September 29, 2025.
The next risk is inflation and threats to financial stability. Because if monetary instruments are too focused on real sector stimulus, the risks of inflation, asset bubbles, or weakening of the rupiah could potentially increase.
Riri Rahayuningsih contributed to the writing of this article.
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