Jakarta, CNBC Indonesia – The news of the change to the Act (UU) Bank Indonesia (BI) which smelled ‘old’ is getting stronger. In fact, the latest news states that changes to the legal umbrella will soon be discussed by the government and the DPR.
In a document received by CNBC Indonesia, it was revealed that the central government is preparing a Draft Law (Bill) on Amendments to Law 23/1999 on Bank Indonesia.
The bill does not yet have a number or year of publication. However, in this document, a draft law relating to the third amendment to Law 23/1999 concerning Bank Indonesia is written.
“Whereas in order to realize Bank Indonesia as the central bank as referred to in the 1945 Constitution of the Republic of Indonesia, it is necessary to restructure Bank Indonesia so that it is able to establish a comprehensive and coordinated monetary policy that can improve the people’s welfare and overcome emergency situations that may endanger them. the country’s economy, and responding to future economic challenges in the face of economic globalization, “wrote the considerations in the bill, as quoted on Friday (18/9/2020).
Another consideration is that the current monetary policy set by the central bank still focuses on exchange rate and price stability. Thus, it is deemed not strong enough to boost the economy, create jobs and improve people’s welfare.
In the BI Bill, Article 34 states, the task of supervising a Bank that has been carried out by the Financial Services Authority (OJK) has been transferred to Bank Indonesia.
Then it was discovered, the transfer of bank supervision from OJK to BI is planned no later than the end of 2023.
“The transfer of duties to supervise the Bank as referred to in paragraph (1) shall be carried out no later than 31 December 2023,” wrote Article 34 paragraph (2) of the BI Bill, quoted on Friday (18/9/2020)
Meanwhile, one of the crucial points in the bill, namely the provisions of Article 75 which was amended so that it reads like this.
“Considering that changes in monetary policy are of a very basic nature, it is necessary to change the Board of Governors,” wrote article 75 paragraph 1 of the bill.
Then in Article 2, it is stated that with the enactment of this Law, the Board of Governors of Bank Indonesia will be terminated and will be appointed as executing the Board of Governors.
Meanwhile, at the latest one year since the legal umbrella comes into effect, the President will propose the Board of Governors for the next 5-year term.
(dru)
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