Indonesian Finance Minister Denies Rumors of Central Bank Coming Under Ministry's Control

Indonesian Finance Minister Purbaya Yudhi Sadewa has denied recent reports suggesting that Bank Indonesia (BI) will be placed under the coordination of the Ministry of Finance. The minister stated that structural changes to financial institutions are not appropriate at this time and that strengthening synergy within the Financial System Stability Committee (KSSK) is the top priority. Speaking at a press conference on the results of the KSSK meeting in Jakarta on August 4, 2026, Minister Purbaya strongly denied the rumors. He commented, "Who said that? We need to see how things develop. It's too early to say something like that." The minister explained that changing the existing system under the current circumstances is not advisable. He emphasized that strengthening cooperation among related institutions is more crucial than structural reform. Specifically, he highlighted the importance of deepening coordination with BI, the Financial Services Authority (OJK), the Indonesia Deposit Insurance Corporation (LPS), and the Ministry of Finance to aim for more synergistic policy decisions. Regarding the independence of the central bank, Minister Purbaya pointed out that the involvement of the House of Representatives (DPR) and the Investment Management Agency (Danantara) should be carried out transparently. He referenced discussions in the DPR, stating, "If the parliament can issue strong warnings to the Finance Minister or the President, why can't the central bank?" However, he maintained that there would be no issues as long as transparency is ensured. Previously, Minister Purbaya had explained that Danantara's participation in KSSK meetings was aimed at strengthening the information base for regulators. He asserted that Danantara only provides advice and holds no voting rights or authority in decision-making. The strategic decision-making power of KSSK rests with its four principal members: the Ministry of Finance, BI, OJK, and LPS, and Danantara's involvement would not affect the central bank's independence or policy-making mechanisms. Minister Purbaya further explained that input from Danantara offers perspectives from business actors managing large-scale operations, which helps regulators formulate more precise policies. He reiterated that Danantara was invited to KSSK meetings at the President's direction but serves solely as an observer or guest, with no voting rights in any KSSK decisions. Source: Liputan6