Bank of Indonesia Should Optimalize Its Supervisory Policies for Agricultural Development of Indonesia
One member of the Supervisory Board of Bank Indonesia (BSBI),Dr. M. FadhilHasan stated that the role of Bank Indonesia (BI) is still very limited. According to the Act No. 23 of 1999 concerning Bank Indonesia, the role Bank Indonesia is mainly to maintain the stability of the rupiah. In addition, Bank Indonesia is also mandated to maintain the stability in the regulation and management of the National Payment System (NPS). The smooth and efficient operation of the NPS also demands robust infrastructure. Thus, so far there is no supervisory function of the Bank to encourage the development of other real sectors such as infrastructure, agriculture and Micro, Small and Medium Enterprises (SMEs). Though these three sectors have very important roles in the economic development in the nation, especially the regional developments.
Dr. M. FadhilHasanmade that statement in the seminar "The Role of Bank Indonesia in Regional Economic Development" held by BSBI and the International Center for Applied Finance and Economics, Institute of Research and Community Service, Bogor Agricultural University (InterCAFE of LPPM-IPB), on Monday, 24 March 2014. Similar statement was also stated by Dr.ArifBudimanta, a member of Commission XI of the House of Representatives, as one of the resource person for that seminar. At the end of the seminar some students as well as alumni of IPB recommended that Bank Indonesia should enlarge its capacitytoenable the Bank to drive Regional Development Bank (BPD)in providing financing policy and assistanceto assist the development ofagricultural industry. Further, through its supervisory policies, Bank Indonesia should be able to improve the cost efficiency of banking operations, reduce disparities that burden the interest of SMEs, and encourage State-Owned Enterprises (SOEs) Banksas an agent of development.
Earlier, the Vice Chancellor for Research and Cooperation IPB, Prof. Dr.AnasMiftahFauzi in his opening remarks stated the variety of innovations have been achieved by IPB. He expected that those innovations can be implemented to support the advancement of regional development. The special activities was carried out at DRAMAGA Campus, Bogor, and was also attended by Chairman of the BSBI, Dr.Juoro Umar, Chief Representative of Bank Indonesia West Java Banten, Dr.Ediana Dian Rae, and Senior Researcher Dr.InterCAFE. Faith Sugema.(Wied).
