Will BI's fate be determined in Omnibus Law on Financial Sector?

The government, together with the House of Representatives (DPR) and the Regional Representatives Council of the Republic of Indonesia (DPD RI), have proposed 38 bills (RUU) to be included in the National Legislation Program (Prolegnas) priority list next year. Of the 38 bills that were included in the prolegnas, there were drafts of bills on the handling of banking problems, strengthening coordination, and restructuring of the institutional authority of the financial sector. In this bill, the duties of Bank Indonesia (BI) will expand.

Aside from burden-sharing with the government, namely buying Government Securities (SBN) to finance the impact of the pandemic, the bill places the central bank as standby buyer of SBN in the event of a financial crisis. The policy refers to the Omnibus Bill on Financial Sector or the Bill on the Handling of Banking Problems, Strengthening Coordination, and Reorganizing the Financial Sector Institutional Authority. The draft regulation emphasizes that BI has the authority to buy long-term SBN in the primary market.