Legal Analysis of Bank Indonesia's Mandate Expansion Plan Regarding the Independence of the Central Bank from the Perspective of the Bank Indonesia Law and the Constitution of the Republic of Indonesia

This study aims to legally analyze the plan to expand Bank Indonesia's mandate, which not only functions to maintain monetary stability, payment systems, and financial system stability as stipulated in Law Number 23 of 1999 concerning Bank Indonesia, but is also directed at supporting national economic growth. The main issue studied is the extent to which the expanded mandate is in line with the principle of central bank independence as guaranteed in Article 23D of the 1945 Constitution of the Republic of Indonesia. The analysis was conducted by examining the latest provisions in Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (P2SK Law), government policies within the framework of economic development, and implementing regulations related to strengthening Bank Indonesia's functions. The results of the study indicate that normatively, the expansion of Bank Indonesia's mandate has legal legitimacy based on the P2SK Law, but has the potential to reduce institutional independence due to the possibility of fiscal and political policy intervention in determining the direction of economic growth. Nevertheless, the protection of Bank Indonesia's independence remains guaranteed through checks and balances mechanisms, such as the regulation of the Board of Governors' term of office, the prohibition of external intervention in decision-making, and the obligation of accountability to the House of Representatives. Thus, expanding Bank Indonesia's mandate is legally possible, provided it is carried out within the framework of the constitution and laws and regulations that guarantee a balance between independence and accountability.