Bank Indonesia

From Wikipedia, the free encyclopedia

Bank Indonesia is the central bank of Indonesia. Its current governor is Burhanuddin Abdullah.

It describes its strategic objectives as being [1]:

Maintain monetary stability
Maintain the financial sustainability of Bank Indonesia
Strengthen the effectiveness of monetary management
Create a sound and effective banking system and financial system stability
Maintain the security and effectiveness of the payment system
Increase the effectiveness of Good Governance implementation
Strengthen the organization and build highly competent human resources with the support of a knowledge-based work culture
Integrate Bank 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.

1 History
2 Organization
3 See also
4 External link

[edit] History

Bank Indonesia was founded on July 1, 1953, from the nationalization of De Javasche Bank, a Dutch bank dating from colonial times. For the next 15 years, Bank Indonesia carried on commercial activities as well as acting as the nation’s bank. This came to an end with the Act No. 13 Year 1968 on Central Bank, which was subsequently replaced by the Act No. 23 Year 1999, finally freeing the bank from government interference. Thereafter, the bank reported to the House of Representatives 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 for a term five years, 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 House of Representatives. Deputy governors are nominated by the governor and appointed by the president, with approval of the House of Representatives.

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.