Bank Indonesia

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Bank Indonesia
Bank Indonesia headquarters in Jakarta
Bank Indonesia headquarters in Jakarta
Headquarters Jakarta, Indonesia
Established 1 July 1953
Governor Darmin Nasution (acting)[1]
Central Bank of Indonesia
Currency Indonesian rupiah
ISO 4217 Code IDR
Website www.bi.go.id

Bank Indonesia is the central bank of Indonesia. Bank Indonesia is currently being governed on an interim basis by Darmin Nasution. The last governor, Boediono, resigned due to his vice presidential candidacy in the Indonesian presidential election and his replacement has yet to be nominated by President Susilo Bambang Yudhoyono.

Finance minister Sri Mulyani Indrawati was proposed as a candidate to take over the Bank Indonesia governorship earlier in 2009, however is now likely to remain in Yudhoyono's new cabinet. [1]

Contents

[edit] History

Bank Indonesia was founded on 1 July 1953 from the nationalization of De Javasche Bank, a Dutch bank dating from colonial times.[2]

For the next 15 years, the Bank of Indonesia carried on commercial activities as well as acting as the nation’s bank.

This came to an end with the Law No.13/1968 on the Central Bank, which was subsequently replaced by Law No.23/1999, freeing the bank from government interference.

Thereafter, the bank reported to the People's Representative Council instead of the president, and the bank’s governor was no longer a member of the cabinet.

[edit] Organization

The bank is led by the board of governors, comprising the governor, a senior deputy governor and at between four and seven deputy governors.

The governor and deputy governors serve a five year term ,and are eligible for re-election for a maximum of two terms.

The governor and senior deputy governor are nominated and appointed by the president, with approval from the People's Representative Council. Deputy governors are nominated by the governor and appointed by the president, with approval of the People's Representative Council.

The president has no power to dismiss a member of the board, except when a board member voluntarily resigns, is permanently handicapped, or is proven guilty of criminal offence.

The Board of Governors Meeting is the bank’s highest decision-making forum. It is held at least once a month to decide on general policy on monetary affairs, and at least once a week to evaluate policy implementation or to decide on other strategic and principle policy.

[edit] Strategic objectives

The Bank describes its strategic objectives as being [2]:

  1. Maintain monetary stability
  2. Maintain the financial sustainability of the Bank of Indonesia
  3. Strengthen the effectiveness of monetary management
  4. Create a sound and effective banking system and financial system stability
  5. Maintain the security and effectiveness of the payment system
  6. Increase the effectiveness of Good Governance implementation
  7. Strengthen the organization and build highly competent human resources with the support of a knowledge-based work culture
  8. Integrate the Bank of Indonesia's transformation in line with Bank Indonesia's destination statement of 2008

It operates 37 offices across Indonesia, and four representative offices in New York, London, Tokyo and Singapore

[edit] List of Governors

No. Name Reign
1. Radius Prawiro 1966-1973
2. Rachmat Saleh 1973-1983
3. Arifin Siregar 1983-1988
4. Adrianus Mooy 1988-1993
5. J. Soedradjad Djiwandono 1993-1998
6. Syahril Sabirin 1998-2003
7. Burhanuddin Abdullah 2003-2008
8. Boediono 2008-2009
9. to be announced 2009-

[edit] Offices worldwide

  • Bank Indonesia representative office at Singapore.[3]

[edit] References

  1. ^ Suharmoko, Aditya (28 July 2009). "New senior deputy governor vows to carry on with reforms". The Jakarta Post. http://www.thejakartapost.com/news/2009/07/28/new-senior-deputy-governor-vows-carry-with-reforms.html. Retrieved 24 September 2009. 
  2. ^ Cribb, Robert & Kahin, Audrey (2004). Historical Dictionary of Indonesia. Historical dictionaries of Asia, Oceania, and the Middle East (2nd ed.). Lanham, MD: Scarecrow Press. pp. 45–46. ISBN 978-0-8108-4935-8. 
  3. ^ http://masnet.mas.gov.sg/fin/findir/SDWFIDIR.NSF/69af9793282a89864825635e00263a34/d25e4e24755a3007482565e9002af812?OpenDocument

[edit] See also

Indonesia portal

[edit] External links

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