Sri Mulyani Explains The Rationale Behind The Dissolution Of BKF

Thursday, 14 Nov 2024

By srirahayu@insightinnews.com Finance Minister Sri Mulyani Indrawati has explained the rationale behind President Prabowo Subianto's decision to dissolve the Fiscal Policy Agency (BKF) and to establish two additional directorates general within the organizational structure of the Ministry of Finance (Kemenkeu). She stated that the BKF has now been renamed the Directorate General of Economic and Fiscal Strategy. This change is in accordance with administrative regulations set forth by the Ministry of Administrative and Bureaucratic Reform (KemenPAN RB), which stipulate that agencies should not be responsible for formulating regulations or policies. "The transformation from an agency to a directorate general was necessary because, according to MenPAN RB, agencies do not create policies, whereas Mr. Febrio (Head of BKF Febrio Kacaribu) has been involved in extensive policy-making. Therefore, it was ultimately changed to a directorate general," Sri Mulyani remarked during a press conference on the State Budget at the Ministry of Finance in Jakarta on Friday, November 8, 2024. On the other hand, within the organizational structure of the Ministry of Finance, the Directorate General of Financial Sector Stability and Development has been established. The State Treasurer indicated that the existence of this directorate general aims to enhance the role of the Ministry of Finance in the Financial System Stability Committee (KSSK), both in terms of the financial sector and international matters. "We often serve as a counterpart to Bank Indonesia, the Financial Services Authority, the Deposit Insurance Corporation, and various laws related to the P2SK. Our role has become increasingly critical, and therefore, it is necessary to elevate it to a directorate general, which has previously been managed by expert staff who typically do not have a formal structure," explained Sri Mulyani.

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