Policy Talk 2025: Indonesia's Monetary Policy and BI's Future Mandate

Policy in Transition: Indonesia’s Monetary Policy & the Future of BI’s Mandate explores one of the most consequential debates currently unfolding in Jakarta: whether Indonesia should expand the mandate of its central bank, Bank Indonesia (BI), beyond price stability and financial system soundness. As Indonesia navigates global economic uncertainty, currency pressures, and domestic political priorities, this discussion highlights the trade-offs between maintaining central bank independence and mobilizing monetary capacity to support national development goals.

Hosted by Indonesia Caucus at Harvard Kennedy School, the event brings together policymakers, academics, and the Harvard community to examine BI’s evolving institutional role, the risks and opportunities posed by proposed legislative changes, and broader implications for macroeconomic stability, investor confidence, and Indonesia’s long-term growth trajectory.