Bank Indonesia

Logo of Bank Indonesia

Bank Indonesia headquarters

Headquarters

Jakarta, Indonesia

Established

1 July 1953

Governor

Agus Martowardojo

Central bank of

Indonesia

Currency

Indonesian rupiah
IDR (ISO 4217)

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 23 May 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.

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

History

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

King William I of the Netherlands granted the right to create a bank in the Indies in 1826 which was named "De Javasche bank" or "The Java Bank". It was founded on 24 January 1828 and later became the circulation bank of the Dutch East Indies. The bank regulated and issued the Netherlands Indies gulden.

In 1881, an office of the Java Bank was opened in Amsterdam. Later followed the opening of an office in New York. By 1930 the bank owned sixteen office branches in the Dutch East-Indies: Bandung, Cirebon, Semarang, Yogyakarta, Surakarta, Surabaja, Malang, Kediri, Banda Aceh, Medan, Padang, Palembang, Banjarmasin, Pontianak, Makassar, and Manado.

The Java Bank was operated as a private bank and individuals as well as industries etc. could get help in the bank’s offices.^[1]

The branch of De Javasche Bank in Bandung, built in 1918, it is a museum today.

Bank Indonesia was founded on 1 July 1953 from the nationalisation of De Javasche Bank, three years after the recognition of Indonesia's independence by Netherlands. ^[2]

For the next 15 years, the Bank of Indonesia carried on commercial activities as well as acting as the nation’s national bank and is in charge in issuing Rupiah currency.

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

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) in Bali, Indonesia in 2010. On 14 May 2012 Bank Indonesia announced it would be making specific commitments to financial inclusion under the Maya Declaration.

By 30 December 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

The Bank describes its strategic objectives as being :

Maintain monetary stability
Maintain the financial sustainability of the Bank of 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 organisation and build highly competent human resources with the support of a knowledge-based work culture
Integrate the Bank of Indonesia's transformation in line with Bank Indonesia's destination statement of 2008

National Payment Gateway

The aim is to integrate all Automated Teller Machines in ASEAN countries, beginning with integration first in each country. On 16 January 2012 interconnection between Bank Mandiri ATMs and Bank Central Asia ATMs (Prima ATMs) was launched.^[3]

Bank Indonesia Liquidity Support

Bank Indonesia Liquidity Support is an Indonesian government policy that was formulated with Bank Indonesia in the crisis period and executed by Bank Indonesia to rescue the monetary and banking system as well as the economy as a whole. It was partly based on the instruction and command of the President in the limited meeting of economic, finance, and development supervision and production and distribution on 3 September 1997.

This policy was provided under various emergency lending schemes (Fasilitas Diskonto I/Fasdis I, Fasdis II, Fasilitas SBPU, Fasilitas SBPUK, Fasilitas Diskonto Baru and Dana Talangan).

Offices

BI operates 37 offices across Indonesia, and four representative offices in New York City, 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

Bank Indonesia have branches in almost all major cities of Indonesia.

Bank Indonesia in Medan
Bank Indonesia in Banjarmasin
Bank Indonesia in Surakarta
Bank Indonesia in Yogyakarta
Bank Indonesia in Padang
Bank Indonesia in Palembang (1950s)
Town Hall and Bank Indonesia in Medan (formerly De Javasche Bank)
De Javasche Bank in Surabaya
De Javasche Bank in Malang
De Javasche Bank in Banda Aceh

Worldwide representative offices

Singapore: 11 Collyer Quay 08-01 The Arcade Singapore 049317.^[4]
London: 10 City Road, London EC 1Y 2EH.
Tokyo: New Kokusai Building Room 906 No.4 - 1, Marunouchi 3 - Chome Chiyoda-ku, Tokyo, 100-0005 Japan.
New York: One Liberty Plaza 165 Broadway, 31st floor New York N.Y. 10006.^[5]

List of Governors

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–

References

↑ http://www.indonesia-dutchcolonialheritage.nl/jakhistoricalsites/Hosp.pdf
↑ 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.
↑ "Senin Besok, ATM Mandiri Mulai Koneksi BCA". 14 January 2012.
↑ "MASNET". mas.gov.sg. Retrieved 7 July 2015.
↑ "Halaman Tidak Dapat Ditemukan - Bank Sentral Republik Indonesia". bi.go.id. Retrieved 7 July 2015.

External links

Bank Indonesia official website

Banks in Indonesia

Central bank: Bank Indonesia

Conventional banks
State-owned banks	Bank Mandiri Bank Negara Indonesia Bank Rakyat Indonesia Bank Tabungan Negara
National private foreign exchange banks	Bank Agroniaga Bank Anda Bank Artha Graha Internasional Bank Bukopin Bank Bumi Arta Bank Capital Indonesia Bank Central Asia Bank CIMB Niaga Bank Danamon Bank Ekonomi Raharja Bank Ganesha Bank Hana Bank Himpunan Saudara 1906 Bank ICB Bumiputera Bank ICBC Indonesia Bank Index Selindo Bank Maybank Indonesia Bank Maspion Bank Mayapada Bank Mega Bank Mestika Dharma Bank Metro Express Mutiara Bank Bank Nusantara Parahyangan Bank OCBC NISP Bank of India Indonesia Panin Bank Bank Permata Bank QNB Kesawan Bank SBI Indonesia Bank Sinarmas Bank UOB Indonesia
National private non-foreign exchange banks	Anglomas Internasional Bank Bank Andara Bank Artos Indonesia Bank Bisnis Internasional Centratama Nasional Bank Bank Dipo International Bank Fama Internasional Bank Harda Internasional Bank Ina Perdana Bank Jasa Jakarta Bank Kesejahteraan Ekonomi Bank Liman International Bank Mayora Bank Mitraniaga Bank Multi Arta Sentosa Bank Nationalnobu Prima Master Bank Bank Pundi Indonesia Bank Royal Indonesia Bank Sahabat Purba Danarta Bank Sinar Harapan Bali Bank Tabungan Pensiunan Nasional Bank Victoria Internasional Bank Yudha Bhakti
Regional banks	Bank Jambi Bank Kalsel Bank Kaltim Bank Sultra Bank BPD DIY Bank Nagari Bank DKI Bank Lampung Bank Kalteng Bank BPD Aceh Bank Sulsel Bank BJB Bank Kalbar Bank Maluku Bank Bengkulu Bank Jateng Bank Jatim Bank NTB Bank NTT Bank Sulteng Bank Sulut Bank BPD Bali Bank Papua Bank Riau Kepri Bank Sumsel Babel Bank Sumut
Joint-venture banks	Bank ANZ Indonesia Bank Commonwealth Bank Agris Bank BNP Paribas Indonesia Bank Capital Indonesia Bank Chinatrust Indonesia Bank DBS Indonesia Bank KEB Indonesia Bank Mizuho Indonesia Bank Rabobank International Indonesia Bank Resona Perdania Bank Sumitomo Mitsui Indonesia Bank Windu Kentjana International Bank Woori Indonesia
Foreign banks	Bank of America Bangkok Bank Bank of China Citibank Deutsche Bank HSBC JPMorgan Chase Royal Bank of Scotland Standard Chartered Bank of Tokyo-Mitsubishi UFJ

Sharia banks
State-owned banks	Bank BNI Syariah Bank Muamalat Bank Syariah Mandiri
National private foreign exchange banks	BCA Syariah Bank BJB Syariah Bank BRI Syariah Bank Mega Syariah Panin Bank Syariah Bank Syariah Bukopin Bank Victoria Syariah
Joint-venture banks	Bank Maybank Syariah Indonesia

Sharia business units of conventional banks
State-owned banks	Bank BTN Syariah
National private foreign exchange banks	Bank Danamon Syariah CIMB Niaga Syariah BII Syariah OCBC NISP Syariah Bank Permata Syariah
Regional banks	Bank BPD Aceh Syariah Bank BJB Syariah Bank DKI Syariah Bank Kalbar Syariah Bank Kalsel Syariah Bank NTB Syariah Bank Riau Kepri Syariah Bank Sumsel Babel Syariah Bank Sumut Syariah
Foreign banks	HSBC Amanah

Central banks
Global	Bank for International Settlements Basel Committee on Banking Supervision Financial Stability Board
Policies	Capital requirement Contractionary monetary policy Expansionary monetary policy Basel II Basel III Basel 4
Implementation	Capital control Discount rate Interest rates Money creation Open market operation Sovereign wealth fund
Bretton Woods system	International Monetary Fund World Bank Group International Bank for Reconstruction and Development International Centre for Settlement of Investment Disputes International Development Association International Finance Corporation Multilateral Investment Guarantee Agency
Lists	List of central banks Central banks and currencies of Africa Central banks and currencies of Asia-Pacific Central banks and currencies of the Caribbean Central banks and currencies of Europe Central banks and currencies of Central America and South America

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

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