Purbaya: Revision Of P2SK Facilitates Synchronization Of Fiscal Policy And Monetary

Minister of Finance Purbaya Yudhi Sadive (Photo: Doc. VOI)

JAKARTA - Minister of Finance Purbaya Yudhi Sadive emphasized that the revision of the Financial Sector Development and Strengthening Law (UU P2SK) is an important momentum to strengthen the harmony between fiscal and monetary policies.

He said that adjusting these regulations could make the direction of national economic policy more coordinated, responsive, and effective in dealing with global and domestic dynamics.

According to Purbaya, the revision of the P2SK Law will increase coordination between all financial authorities, namely the Ministry of Finance, Bank Indonesia (BI), OJK, and LPS.

"It's very clear that the one who gave more strength was OJK, BI, LPS. The Ministry of Finance was a little. Previously, LPS reported it to us, now report it to the DPR. I lost," he said at the Financial Forum at the Indonesia Stock Exchange Building, Wednesday, December 3.

He added that one of the most important points in the revision of the P2SK Law was the widening of Bank Indonesia's mandate, namely that if previously BI focused on exchange rate stability and prices, then through this law change BI would be more motivated to support economic growth.

"The role of the central bank in the past was only to maintain the exchange rate and translate it into price stability, right. Now there is, later if so, the new rules are to encourage economic growth. This is a very good thing," he said.

However, he acknowledged that the coordination between agencies so far is still not optimal because each authority often works within its own limits of authority.

"My observations so far, even though the KSSK has a coordinator of the Minister of Finance, during discussions we tend to be bound in their respective corridors. OJK talks about OJK, finances talk about finances, BI talks about central bank policies, LPS waits for banks to go bankrupt, he doesn't do anything," he said.

Purbaya assessed that the revision of the P2SK Law would make cross-authority communication more flexible so that fiscal and monetary policies could run more integrated.

According to him, economic growth cannot be achieved only through fiscal policy.

"So when I get concerned with growth, I usually do we beat fiscal policies and others. But economic machinery is not only fiscal. Fiscal is only the government, on the other hand we need encouragement from the monetary sector to encourage the private sector to be faster," he explained.

He added that the amendment to the P2SK Law would make it easier for the Ministry of Finance to synchronize fiscal policy with Bank Indonesia's policies.

"Previously I discussed at KSSK, they (BI) said it was our area. Don't enter our area. Now it's our area too. Your policy is different, our growth is also difficult, so that's your responsibility too," said Purbaya.

Purbaya ensured that the revision of the P2SK Law would be completed soon. "Soon," he said.

For information, in the draft Bill on Amendments to Law Number 4 of 2023 concerning P2SK which was completed on October 1, 2025, BI's authority was expanded, including in maintaining financial system stability and supporting sustainable economic growth.