JAKARTA - Finance Minister Purbaya Yudhi Sadewa responded to the concerns of several economists regarding the possible disruption of Bank Indonesia's (BI) independence in line with the plan to exchange positions between Deputy Minister of Finance Thomas Djiwandono and former Deputy Governor of BI Juda Agung.
Purbaya emphasized that the decision-making mechanism at BI is equipped with strong internal supervision.
"Can one control seven? Can't it be if Gerindra is too. It will definitely be debated, discussed, later if the voting is in trouble. So it will definitely be controlled from within as well. Fiscal and monetary policies will be later if the person goes there, Mr. Tommy will definitely be more independent, more free. He will definitely not go to Gerindra again if my guess is yes," he told the media, Tuesday, January 20.
He added that monetary policy at BI is set collectively by the Board of Governors, so it is impossible to be controlled by one individual, even if he has a certain political background.
Responding to Thomas' status as an active manager of the Gerindra Party and the nephew of President Prabowo Subianto, Purbaya ensured that all legal provisions would be obeyed.
According to him, Thomas will follow the rules of the Financial Sector Development and Strengthening Law (P2SK) which stipulates the independence of BI officials.
"Of course he will resign later, it's easy, it's over. I think before fit and proper he resigned if the rules were like that. If it's like that in LPS, it's not allowed here, it's the same here, you have to resign first. There's no problem," he said.
Purbaya also denied concerns that Thomas' closeness to the government could make BI used to fund strategic programs, including Free Nutritious Meals (MBG).
"It can be seen by the public, if the public is given, they can see it directly and criticize it. I also don't need their money. I'm rich, why do I have to ask for their money," he said.
He emphasized that the financing of the program had been budgeted in the State Budget (APBN).
"MBG is enough. This year it is Rp. 335 trillion, that is, it has been designed in the budget, it should be enough. I don't need Central Bank money for that," he explained.
He emphasized that BI's independence would be maintained, unlike the 2020 crisis situation which required tighter policy coordination.
"So we will maintain the independence of the Central Bank with the Government as much as possible, if the time in 2020 there is a major crisis so that the policy must be equated, if not now, in my understanding it will not be a burden on the Central Bank for the cost of our development programs," he explained.
According to him, the coordination between the government and the Central Bank so far is only a synergy to encourage economic growth, not an intervention that violates the principle of independence.
"So far, it's just synergy in a better direction, right? If that's not an intervention, cooperation. Right? Later if there is excessive government intervention that is considered, it can be seen by the public," he said.
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