Indonesia parliament passes law to expand central bank's mandate

Indonesia's parliament on Thursday voted to pass new financial legislation that will widen the central bank's mandate to include supporting economic growth and also formalise its debt monetisation operations.

Called the "Development and Strengthening of Financial Sector" bill, the new set of rules are also seen opening the door for ex-politicians to head Bank Indonesia (BI), raising concerns about its independence.

With more than 500 pages, lawmakers say the bill intends to update regulations to address challenges in the digital era, as well as improve the financial sector's efficiency.