Bank Indonesia

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Bank Indonesia
Logo of Bank Indonesia Bank Indonesia headquarters
Logo of Bank Indonesia Bank Indonesia headquarters
Headquarters Jakarta, Indonesia
Established 1 July 1953
Governor Agus Martowardojo
Central bank of Indonesia
Currency Indonesian rupiah
ISO 4217 Code IDR
Website www.bi.go.id

Bank Indonesia (BI) is the central bank of the Republic of Indonesia. Agus Martowardojo, formerly the finance minister, is the current governor. The last governor before Agus Martowardojo was Darmin Nasution who resigned at 23 May 2013. Agus Martowardojo was sworn in by president Susilo Bambang Yudhoyono on May 23, 2013.

Finance Minister Sri Mulyani Indrawati was proposed as a candidate for governor of BI in 2009. However, the suggestion did not proceed and she later left the cabinet on 5 May 2010 and moved to the World Bank Group as Managing Director. [1][2]

By March 26, 2013, panel of Indonesian parliament member approved Finance Minister Agus Martowardojo to become the central bank governor.

History[edit]

The office of De Javasche Bank in Batavia (old Jakarta), presently the Bank Indonesia Museum.

Bank Indonesia was founded on 1 July 1953 from the nationalization of De Javasche Bank (Bank of Java), a Dutch bank dating from colonial times which regulated and issued the Netherlands Indies gulden [1]

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, giving the bank independence.

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

Organization[edit]

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.

The Bank is active in promoting financial inclusion policy and is a leading member of the Alliance for Financial Inclusion. It hosted AFI's second annual Global Policy Forum (GPF) [3] in Bali, Indonesia in 2010. On May 14, 2012 Bank Indonesia announced it would be making specific commitments to financial inclusion under the Maya Declaration.

By December 30, 2013, the bank's microprudential supervision functions will be transferred to Financial Services Authority (Indonesia). In the future, the bank will maintain Indonesian financial system and monetary stability through mixture of monetary and macroprudential instruments and policies.

Strategic objectives[edit]

The Bank describes its strategic objectives as being [4]:

  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

National Payment Gateway[edit]

The aim is to integrate all Automated Teller Machines in ASEAN countries, beginning with integration first in each country. On January 16, 2012 interconnection between Bank Mandiri ATMs and Bank Central Asia ATMs (Prima ATMs) was launched.[2]

Offices[edit]

BI operates 37 offices across Indonesia, and four representative offices in New York, London, Tokyo and Singapore. In addition, Bank Indonesia also operates a well-appointed museum (Museum Bank Indonesia) which is housed in the former De Javasche Bank head office building in the (Kota) area of old Jakarta.

Indonesian offices[edit]

Worldwide representative offices[edit]

  • Singapore Singapore: 11 Collyer Quay 08-01 The Arcade Singapore 049317.[3]
  • United Kingdom London: 10 City Road, London EC 1Y 2EH.
  • Japan Tokyo: New Kokusai Building Room 906 No.4 - 1, Marunouchi 3 - Chome Chiyoda-ku, Tokyo, 100-0005 Japan.
  • United States New York: One Liberty Plaza 165 Broadway, 31st floor New York N.Y. 10006.[4]

List of Governors[edit]

Name Period
Radius Prawiro 1966–1973
Rachmat Saleh 1973–1983
Arifin Siregar 1983–1988
Adrianus Mooy 1988–1993
J. Soedradjad Djiwandono 1993–1998
Syahril Sabirin 1998–2003
Burhanuddin Abdullah 2003–2008
Boediono 2008–2009
Darmin Nasution 2009-2013
Agus Martowardojo 2013-

See also[edit]

References[edit]

  1. ^ 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. 
  2. ^ "Senin Besok, ATM Mandiri Mulai Koneksi BCA". January 14, 2012. 
  3. ^ http://masnet.mas.gov.sg/fin/findir/SDWFIDIR.NSF/69af9793282a89864825635e00263a34/d25e4e24755a3007482565e9002af812?OpenDocument
  4. ^ http://www.bi.go.id/web/id/Tentang+BI/Organisasi/perwakilan.htm

External links[edit]


Coordinates: 6°10′54″S 106°49′17″E / 6.18167°S 106.82139°E / -6.18167; 106.82139