Co-operation with Government Deepens, BI Governor Says Independence Will Be Maintained
Jakarta, CNBC Indonesia – Bank Indonesia (BI) Governor Destry Damayanti has stressed that the central bank’s independence will be maintained even as it strengthens co-operation with the government and other stakeholders.
Destry explained that co-operation does not mean institutions surrender their independence or authority. Rather, it means each institution works together, drawing on its own strengths and policies to achieve a shared goal.
“Co-operation means that we move forward together, each with our own strengths or policies, but alongside one another and complementing each other to reach the same goal,” Destry told CNBC Indonesia, in comments cited on Monday (12 October 2026).
She said the most important aspect of building co-operation was for every institution to respect the limits of one another’s authority. This would allow joint work to proceed without institutions taking over each other’s responsibilities or exceeding their powers.
BI, she said, would continue to safeguard its independence in setting and implementing policy. However, independence did not mean that the central bank had to work alone without co-ordinating with others.
“BI’s independence in the context of our policies will certainly be maintained. But that does not mean we act alone. We also have what is called independence within interdependence,” she said.
One example of such co-operation is the effort to control inflation. BI and the government have established the Central Inflation Control Team (TPIP) and Regional Inflation Control Teams (TPID) to maintain the stability of prices and protect people’s purchasing power.
Destry said co-operation was becoming increasingly important as BI’s mandate expanded, including to encourage growth in the real sector and create jobs. The expanded mandate is set out in Law No. 4/2026 on the Development and Strengthening of the Financial Sector (P2SK).
She said BI could not fulfil this mandate on its own. Co-ordination and co-operation were needed with ministries and government agencies, members of the Financial System Stability Committee (KSSK), and other parties with an interest in the national economy.
Destry called this approach “Red and White Co-operation” (Sinergi Merah Putih), referring to joint work by institutions to maintain stability while advancing Indonesia’s development and economic progress.
“All of this can be achieved only if we have co-operation. We need this Red and White Co-operation,” Destry said.
She added that responsibility for Indonesia’s development, progress and economic stability rested with everyone. Co-ordination between institutions was therefore needed to ensure that policies supported one another in meeting national economic objectives.
Nevertheless, Destry reiterated that stronger co-operation would not change BI’s commitment to preserving its independence as a central bank.
“First of all, we will continue to safeguard our independence,” she concluded.