Ferry Proposed By Jokowi Nahkodai Kembali BI, Banggar DPR Highlights 5 Important Duties Of The Governor

Bank Indonesia (BI) building. (doc bi.go.id)

JAKARTA - President Joko Widodo has officially proposed the name Perry Warjiyo to return to his position as Governor of Bank Indonesia (BI), Wednesday, February 22.

Responding to this, the Chairman of the Budget Agency (Banggar) of the People's Representative Council (DPR) of the Republic of Indonesia (RI) Said Abdullah Muhammad Said Abdullah said, the Governor of BI has an important task because BI has a very strategic role.

"The task is to ensure that the inflation rate is under control. This inflation is a very important matter, high inflation can be a disaster for a government, because it has a direct effect on the lives of many people," he said in a press release, Thursday, February 23.

In addition, BI is also tasked with ensuring that the rupiah exchange rate against a number of major global currencies, especially the United States (US) dollar is stable.

Because, Said said, the turmoil of the rupiah could create a runyam for the domestic financial market.

He also emphasized that the Governor of BI needs the ability to organize and make the right decisions in carrying out various market operations with the aim of controlling inflation and the exchange rate.

"BI is also responsible for ensuring that financial inclusion goes well, ensuring various financial transactions, especially regarding the payment system running well, safely, and quickly," he said.

The Indonesian Democratic Party of Struggle (PDI-P) politician said BI was also authorized to manage foreign exchange traffic and state foreign exchange reserves.

Most recently, BI's duties and authorities in implementing macroprudential policies must be placed within the framework of sustainable economic growth.

This is in accordance with Law (UU) Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (PPSK).

This role requires that there be demands for harmony with various other authorities, especially those who are members of the Financial System Stability Committee (KSS) consisting of the Minister of Finance (Menkeu), the Financial Services Authority (OJK), and the Deposit Insurance Corporation (LPS).

Regarding Perry's appointment, Said said, his party secured the president's policy because PDIP was part of the political power that supported the government.

However, Said has five considerations that the Governor of BI must have.

First, the Governor of BI needs to have chemistry with the ranks of the Financial System Stability Committee (KKSK) and have binding with the Minister of Finance and the OJK and LPS commissioners.

This condition is important because at this time and in the future we face difficult economic challenges. The global economy is predicted to be still difficult, we in the country also face political years," he said.

Therefore, Said said, the Governor of BI is expected to ensure that the economy grows sustainably. According to him, this role has been carried out well by the current BI Governor.

Second, the governor needs to be alert and responsive to new unexpected challenges.

"We need a BI governor figure who can help the government when facing difficult years, such as facing the Covid-19 pandemic in 2020-2021," he explained.

Said said BI's role was very large in sharing the burden (burden sharing) by absorbing state securities (SBN) through a private placement.

According to him, BI can be relied on to be the goalkeeper for financing liquidity during the pandemic.

"BI at that time really helped the position of the State Revenue and Expenditure Budget (APBN) to be safe for enormous financing needs. The current BI governor has also proven it," he said.

Third, the Governor of BI has an important task in ensuring the sustainability of regulations on national foreign exchange traffic and reserves.

Regulations on foreign exchange traffic are needed to ensure that the country's foreign exchange has a multiplier impact on the national economy. This agenda needs to be strengthened in the future," said Said.

Fourth, the Governor of BI should be able to and have built good relations with the DPR, especially to the leadership of the DPR, especially the Chairperson of the DPR and the board's equipment, such as Banggar and Commission XI of the DPR.

"This ability is needed by the Governor of BI so that in carrying out BI's strategic tasks in a technocracy and obtaining strong political support from the DPR," he explained.

Said assessed that for the past five years the Governor of BI has received sufficient support from the DPR.

Fifth, Said said, the figure of the Governor of BI must be the one who has an international network.

"This will increase market confidence, especially international investors in the Indonesian financial market. This trust is very important because our financial markets are not yet deep," he said.

Said said the figure of the Governor of BI who was recognized internationally would encourage capital inflows to strengthen Indonesia's financial markets. "This agenda needs to be strengthened by the Governor of BI in the future," he concluded.