-
Policy
Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM POLICY: -
EM Policy
EM Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM EM POLICY: -
G10 Markets
G10 Markets
Real-time insight on key fixed income and fx markets.
Launch MNI PodcastsFixed IncomeFI Markets AnalysisCentral Bank PreviewsFI PiFixed Income Technical AnalysisUS$ Credit Supply PipelineGilt Week AheadGlobal IssuanceEurozoneUKUSDeep DiveGlobal Issuance CalendarsEZ/UK Bond Auction CalendarEZ/UK T-bill Auction CalendarUS Treasury Auction CalendarPolitical RiskMNI Political Risk AnalysisMNI Political Risk - US Daily BriefMNI Political Risk - The week AheadElection Previews -
Emerging Markets
Emerging Markets
Real-time insight of emerging markets in CEMEA, Asia and LatAm region
-
Commodities
-
Credit
Credit
Real time insight of credit markets
-
Data
-
Global Macro
Global Macro
Actionable insight on monetary policy, balance sheet and inflation with focus on global issuance. Analysis on key political risk impacting the global markets.
Global MacroDM Central Bank PreviewsDM Central Bank ReviewsEM Central Bank PreviewsEM Central Bank ReviewsBalance Sheet AnalysisData AnalysisEurozone DataUK DataUS DataAPAC DataInflation InsightEmployment InsightGlobal IssuanceEurozoneUKUSDeep DiveGlobal Issuance Calendars EZ/UK Bond Auction Calendar EZ/UK T-bill Auction Calendar US Treasury Auction Calendar Global Macro Weekly -
About Us
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
Real-time Actionable Insight
Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.
Free AccessMNI INSIGHT: New Bill No Threat to Bank Indonesia Independence
Indonesia's planned Omnibus Bill is a step in Jakarta's effort to gain greater credibility in global financial markets and not an attempt to undermine the independence of the central bank, MNI understands.
Although draft provisions require the bank to take economic policies into account in its decision making, the Finance Ministry holds that the bill will maintain Bank Indonesia's independence in the interests of the country, MNI was told.
The government is pitching the bill as an attempt to modernise the central bank and the country's investment regime. It is its second such attempt. An omnibus bill was shelved in 2020 due to concerns over the independence issue.
The bill is expected to create a new panel to oversee BI, above the current Board of Governors, whilst adding new responsibilities to its mandate, such as maintaining the stability of the financial system and promoting employment.
CONFLICTS
BI is concerned about the legislation, especially as it coincides with the creation of Indonesia's sovereign wealth fund, the Indonesian Investment Authority, MNI understands.
The Minister of Finance will also chair a supervisory board for the fund, which Jakarta will seed with around USD5 billion. However, the fund will differ from other such national funds in that it will seek foreign inbound investment.
BI's current mandate is to maintain the stability of the rupiah and target inflation and some bank officials are concerned there may be conflicts of interest between the new mandate and those of the new fund.
Foreign investors, for example, may in some circumstances prefer a lower rupiah to make investments attractive, and this may conflict with BI's long standing mandate.
The omnibus bill is also believed to include provisions to allow Bank Indonesia to directly purchase government debt. The bank already holds 23.1% of Indonesia's sovereign debt compared with 22.9% held by foreign investors, according to data released this week by Bloomberg.
OTHER AMENDMENTS
Changes enabling BI to purchase government bonds directly, effectively financing the government, have also raised the potential for a conflict of interest. However, sources at the Finance Ministry told MNI that the bill is designed only to modernise the role of the central bank in the economy, and will not compromise its independence.
Other planned financial reforms in the omnibus bill dealing with labour and investment have been welcomed by both domestic and foreign investors. The government maintains its goal is to improve Indonesia's investment regime and make it more attractive, not alienate investors or introduce uncertainty.
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.