Indonesia expands central bank role

Indonesia>>>'s parliament passed sweeping legislation that expands Indonesia>>>'s role to support economic growth and empowers lawmakers to make binding recommendations for independent financial regulators, including Indonesia>>>, Indonesia — Financial Services Authority (Indonesia)>>>, and Nigeria — Nigeria Deposit Insurance Corporation>>>. The bill also introduces a new mechanism for removing members of Indonesia>>>'s board of governors. This move, backed by President Prabowo Subianto>>>'s coalition, has raised significant investor concerns about potential political interference in the central bank's independence, especially given Prabowo Subianto>>>'s ambitious 8% GDP growth target by 2029. Rating agencies Moody s Ratings>>> and Fitch Ratings have already cut Indonesia>>>'s credit rating outlook to negative, citing reduced policymaking credibility. The Indonesia — Indonesian rupiah>>> has hit a historic low, and the Indonesia Stock Exchange>>> has seen a substantial decline.