Bank Indonesia
Encyclopedia
Bank Indonesia is the central bank
of The Republic of Indonesia
. Bank Indonesia is currently governed by Darmin Nasution
, former interim governor. The last governor before the interim phase, Boediono
, resigned due to his vice presidential candidacy in the Indonesian presidential election
. Darmin Nasution was sworn in by President Susilo Bambang Yudhoyono
on September 1, 2010.
Finance Minister Sri Mulyani Indrawati
was proposed as a candidate to take over the Bank Indonesia governorship earlier in 2009. However, the suggestion did not proceed and later she left the cabinet on 5 May 2010 and moved to the World Bank
Group as Managing Director. http://www.tempo.co.id/hg/nasional/2009/07/22/brk,20090722-188381,uk.htmlhttp://web.worldbank.org/WBSITE/EXTERNAL/NEWS/0,,contentMDK:22568571~pagePK:64257043~piPK:437376~theSitePK:4607,00.html
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 parliament (People's Representative Council
) instead of the president, and the bank’s governor was no longer a member of the cabinet.
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.
http://www.bi.go.id/web/en/Tentang+BI/Misi+dan+Visi/:
It operates 37 offices across Indonesia, and four representative offices in New York
, London
, Tokyo
and Singapore
Central bank
A central bank, reserve bank, or monetary authority is a public institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country. Central banks often also oversee the commercial banking system of their respective countries...
of The Republic of Indonesia
Indonesia
Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...
. Bank Indonesia is currently governed by Darmin Nasution
Darmin Nasution
Darmin Nasution was born in Tapanuli in North Sumatra on 21st December 1948. In 1986 he received his doctorate of Economics from the University of Paris, Sorbonne, France.Dr...
, former interim governor. The last governor before the interim phase, Boediono
Boediono
Boediono is the Vice President of Indonesia, after winning the 2009 presidential election together with incumbent President Susilo Bambang Yudhoyono.-Education:Boediono received his early education in primary school in Blitar, East Java...
, resigned due to his vice presidential candidacy in the Indonesian presidential election
Indonesian presidential election, 2009
Presidential elections were held in Indonesia on 8 July 2009. The elections returned a president and vice president for the 2009–2014 period. A run-off election was scheduled to be held on 8 September if needed, but President Susilo Bambang Yudhoyono won more than 60% of the vote in the first...
. Darmin Nasution was sworn in by President Susilo Bambang Yudhoyono
Susilo Bambang Yudhoyono
Susilo Bambang Yudhoyono AC , is an Indonesian politician and retired Army general officer who has been President of Indonesia since 2004....
on September 1, 2010.
Finance Minister Sri Mulyani Indrawati
Sri Mulyani Indrawati
In this Indonesian name, the name "Indrawati" is a given name, not a family name, and the person should be referred to by the given name "Sri" or "Sri Mulyani".Sri Mulyani Indrawati is an Indonesian economist...
was proposed as a candidate to take over the Bank Indonesia governorship earlier in 2009. However, the suggestion did not proceed and later she left the cabinet on 5 May 2010 and moved to the World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
Group as Managing Director. http://www.tempo.co.id/hg/nasional/2009/07/22/brk,20090722-188381,uk.htmlhttp://web.worldbank.org/WBSITE/EXTERNAL/NEWS/0,,contentMDK:22568571~pagePK:64257043~piPK:437376~theSitePK:4607,00.html
History
Bank Indonesia was founded on 1 July 1953 from the nationalization of De Javasche Bank, a Dutch bank dating from colonial times.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 parliament (People's Representative Council
People's Representative Council
The People's Representative Council , sometimes referred to as the House of Representatives, is one of two elected national legislative assemblies in Indonesia....
) 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.
Strategic objectives
The Bank describes its strategic objectives as beinghttp://www.bi.go.id/web/en/Tentang+BI/Misi+dan+Visi/:
- 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 organization 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
It operates 37 offices across Indonesia, and four representative offices in New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
, London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
, Tokyo
Tokyo
, ; officially , is one of the 47 prefectures of Japan. Tokyo is the capital of Japan, the center of the Greater Tokyo Area, and the largest metropolitan area of Japan. It is the seat of the Japanese government and the Imperial Palace, and the home of the Japanese Imperial Family...
and Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
List of Governors
| No | Name | Period |
| 1. | Radius Prawiro Radius Prawiro Dr. Radius Prawiro, Drs.ec.,AK was an Indonesian economist and politician.-Education:The son of a teacher called Suradi Prawiro, Radius attended school in Yogyakarta. In 1942, while still at Middle School he became a cigarette vendor... |
1966-1973 |
| 2. | Rachmat Saleh | 1973-1983 |
| 3. | Arifin Siregar | 1983-1988 |
| 4. | Adrianus Mooy | 1988-1993 |
| 5. | J. Soedradjad Djiwandono J. Soedradjad Djiwandono Joseph Soedradjad Djiwandono was the Governor of Bank Indonesia, the nation's central bank, from 1993 until his sudden dismissal in 1998.... |
1993-1998 |
| 6. | Syahril Sabirin Syahril Sabirin Syahril Sabirin served as the Governor of Bank Indonesia from 1999 to 2003, succeeding Sudrajad Djiwandono. In 2000 he was arrested in a fraud scandal surrounding Bank Bali. Sabirin had initially been sentenced to three years in prison in 2002, a sentence which the Supreme Court reduced to two... |
1998-2003 |
| 7. | Burhanuddin Abdullah | 2003-2008 |
| 8. | Boediono Boediono Boediono is the Vice President of Indonesia, after winning the 2009 presidential election together with incumbent President Susilo Bambang Yudhoyono.-Education:Boediono received his early education in primary school in Blitar, East Java... |
2008-2009 |
| 9. | Darmin Nasution Darmin Nasution Darmin Nasution was born in Tapanuli in North Sumatra on 21st December 1948. In 1986 he received his doctorate of Economics from the University of Paris, Sorbonne, France.Dr... |
2009- |
Offices worldwide
- Bank Indonesia Representative Office at Singapore: 11 Collyer Quay 08-01 The Arcade Singapore 049317.
- Bank Indonesia Representative Office at London: 10 City Road, London EC 1Y 2EH.
- Bank Indonesia Representative Office at Tokyo: New Kokusai Building Room 906 No.4 - 1, Marunouchi 3 - Chome Chiyoda-ku, Tokyo, 100-0005 Japan.
- Bank Indonesia Representative Office at New York: One Liberty Plaza 165 Broadway, 31st floor New York N.Y. 10006.
See also
- Economy of IndonesiaEconomy of IndonesiaIndonesia is the largest economy in Southeast Asia and is one of the emerging market economies of the world. The country is also a member of G-20 major economies. It has a market economy in which the government plays a significant role by owning more than 164 enterprises and administers prices on...
- Indonesian rupiahIndonesian rupiahThe rupiah is the official currency of Indonesia. Issued and controlled by the Bank of Indonesia, the ISO 4217 currency code for the Indonesian rupiah is IDR. Informally, Indonesians also use the word "perak" in referring to rupiah...
- List of banks in Indonesia