POLICY FORMULATION PROCESS
Bank Indonesia as the authority that issues regulations/policies needs to make sure that the process of policy formulation is carried out through a structured and systematic procedure and mechanism in order to produce credible policy outputs and to meet public accountable principles. To enhance the quality of policies, the formulation of policies must meet principles, i.e.: (i) based on research, (ii) future oriented, (iii) good governance, (iv) considering the impact of inter policies, and (v) taking into account the applicable legislation.
To ensure the process of policy formulation in Bank Indonesia already conducted systematically, Bank Indonesia established an integrated policy framework between monetary policies, macroprudential, payment system and Rupiah management, and also supports of regional economic policy as well as international policy. In relation to the formulation of policies, the enhancement of focus on the governance aspect is expected to produce Bank Indonesia policies that are more effective, credible, and meeting the principle of public accountability.
Apart from that, the process of policy formulation shall be communicated to public to enhance the credibility of regulations/policies generated. In order to increase public participation in the formulation of policies, opportunities are open to the stakeholders to provide inputs for regulatory formulation. This is expected to bridge the communication of policies in the beginning and to enhance effectiveness in the implementation of policies in the future.