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Here's the deal: BI's mandate looks solid on paper, but in practice, there are three real pressures.
1. 🏗️ DSI / Danantara — Export Currency Control
PT Danantara Sumberdaya Indonesia (DSI) was established on May 18, 2026, and will act as the sole trader of strategic commodities. After December 31, 2026, DSI will fully take over coal, CPO, and ferroalloy exports — claiming that "export proceeds in various forms of currency, including USD, will be fully converted into state foreign exchange."
The issue is: managing export foreign exchange has historically clashed directly with BI's mandate to maintain exchange rate stability. If foreign exchange flows are controlled by entities under the government (not BI), coordination could be disrupted.
2. 📉 Market Skepticism
LPEM FEB UI notes that investors are worried about several domestic issues — from low tax ratios, populist programs straining fiscal resources, to potential contingent liabilities from Danantara. Indonesia's foreign exchange reserves have already dropped by more than USD 10 billion due to rupiah stabilization interventions.
3. 🔴 Moody's & S&P Give Warnings
Moody's assesses that the centralization of commodity exports through DSI could negatively impact the credit profile of companies in the related sectors and could increase the risk of market distortion.
4. 🏛️ Perception of BI Governor's Independence
During the fit and proper test for the Deputy Governor candidates in early 2026, the DPR emphasized the commitment to maintaining the central bank's independence from political pressure — a concern that has intensified after President Prabowo nominated Thomas Djiwandono (Deputy Minister of Finance, a relative of the President) as a candidate, raising market concerns about the perception of BI's independence.
#Rupiah #BankIndonesia #BinanceSquareTalks
$TKO @Tokocrypto #Tokocrypto
Here's the deal: BI's mandate looks solid on paper, but in practice, there are three real pressures.
1. 🏗️ DSI / Danantara — Export Currency Control
PT Danantara Sumberdaya Indonesia (DSI) was established on May 18, 2026, and will act as the sole trader of strategic commodities. After December 31, 2026, DSI will fully take over coal, CPO, and ferroalloy exports — claiming that "export proceeds in various forms of currency, including USD, will be fully converted into state foreign exchange."
The issue is: managing export foreign exchange has historically clashed directly with BI's mandate to maintain exchange rate stability. If foreign exchange flows are controlled by entities under the government (not BI), coordination could be disrupted.
2. 📉 Market Skepticism
LPEM FEB UI notes that investors are worried about several domestic issues — from low tax ratios, populist programs straining fiscal resources, to potential contingent liabilities from Danantara. Indonesia's foreign exchange reserves have already dropped by more than USD 10 billion due to rupiah stabilization interventions.
3. 🔴 Moody's & S&P Give Warnings
Moody's assesses that the centralization of commodity exports through DSI could negatively impact the credit profile of companies in the related sectors and could increase the risk of market distortion.
4. 🏛️ Perception of BI Governor's Independence
During the fit and proper test for the Deputy Governor candidates in early 2026, the DPR emphasized the commitment to maintaining the central bank's independence from political pressure — a concern that has intensified after President Prabowo nominated Thomas Djiwandono (Deputy Minister of Finance, a relative of the President) as a candidate, raising market concerns about the perception of BI's independence.
#Rupiah #BankIndonesia #BinanceSquareTalks
$TKO @Tokocrypto #Tokocrypto
XaliCoin
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⚖️ Law Mandates vs. Political Reality 2026
$TKO @Tokocrypto #Tokocrypto
What does Law No. 23/1999 guarantee?
Based on Law No. 23/1999 and its amendment Law No. 3/2004, Bank Indonesia is an independent state institution, free from government and/or third-party interference, unless explicitly regulated by law. "Interference" refers to all forms of intimidation, threats, coercion, and persuasion from others that can directly or indirectly influence BI's policies and execution of tasks.
This independence is established so that the monetary policy set is a long-term strategy, regardless of short-term political pressures and influences.
What does Law No. 23/1999 guarantee?
Based on Law No. 23/1999 and its amendment Law No. 3/2004, Bank Indonesia is an independent state institution, free from government and/or third-party interference, unless explicitly regulated by law. "Interference" refers to all forms of intimidation, threats, coercion, and persuasion from others that can directly or indirectly influence BI's policies and execution of tasks.
This independence is established so that the monetary policy set is a long-term strategy, regardless of short-term political pressures and influences.
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