Bank Indonesia (BI) is the

central bank A central bank, reserve bank, or monetary authority is an institution that manages the currency and monetary policy of a country or monetary union, and oversees their commercial banking system. In contrast to a commercial bank, a central b ...

of the Republic of Indonesia. It replaced in 1953 the Bank of Java ( nl, De Javasche Bank, DJB), which had been created in 1828 to serve the financial needs of the Dutch East Indies.

History

Bank of Java

King William I of the Netherlands William I (Willem Frederik, Prince of Orange-Nassau; 24 August 1772 – 12 December 1843) was a Prince of Orange, the King of the Netherlands and Grand Duke of Luxembourg. He was the son of the last Stadtholder of the Dutch Republic, who went ...

granted the right to create a private bank in the Indies in 1826, which was named . It was founded on 24 January 1828 and later became the bank of issue of the Dutch East Indies. The bank regulated and issued the

Netherlands Indies gulden The Netherlands Indies gulden was the unit of account of the Dutch East Indies from 1602 under the United East India Company ( nl, Vereenigde Oost-Indische Compagnie; VOC), following Dutch practice first adopted in the 15th century (gulden coin ...

. In 1881, an office of the Bank of Java 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, Surabaya, Malang, Kediri, Banda Aceh, Medan, Padang, Palembang, Banjarmasin, Pontianak, Makassar, and Manado. The Bank of Java was operated as a private bank and individuals as well as industries etc. could get help in the bank's offices. File:COLLECTIE TROPENMUSEUM Kantoor van de Javasche Bank in Batavia TMnr 60047649.jpg, Head office of the Bank of Java in

Batavia Batavia may refer to: Historical places * Batavia (region), a land inhabited by the Batavian people during the Roman Empire, today part of the Netherlands * Batavia, Dutch East Indies, present-day Jakarta, the former capital of the Dutch East In ...

, now Museum Bank Indonesia in Jakarta File:Keizersgracht 666-668, kantoorgebouw "De Javasche Bank" (1937-39).jpg,

Keizersgracht The Keizersgracht (; "Emperor's canal") is a canal in Amsterdam, the Netherlands. It is the second of the three main Amsterdam canals that together form the Grachtengordel, or canal belt, and lies between the inner Herengracht and outer Prinsengr ...

666-668, former office of the Bank of Java in

Amsterdam Amsterdam ( , , , lit. ''The Dam on the River Amstel'') is the capital and most populous city of the Netherlands, with The Hague being the seat of government. It has a population of 907,976 within the city proper, 1,558,755 in the urban ar ...

File:COLLECTIE TROPENMUSEUM Kantoor van de Javasche Bank in Bandoeng TMnr 60016843.jpg, Branch of De Javasche Bank in Bandung, built in 1918; now a museum

Bank Indonesia

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. For the next 15 years, Bank Indonesia carried on commercial activities as well as acting as the nation's national bank and is in charge in issuing Indonesian rupiah currency. This came to an end with the Act No. 13 of 1968 on the Central Bank, transforming Bank Indonesia as a central bank. The act was subsequently replaced by Act No. 23 of 1999, giving the bank independence from governmental control. Thereafter, the bank reported to the parliament ( DPR) 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 DPR. Deputy governors are nominated by the governor and appointed by the president, with approval of the DPR. The president has no power to dismiss a member of the board, except when a board member voluntarily resigns, is permanently disabled, or is proven guilty of criminal offence. The senior deputy governor acts as governor in the case of the latter's office vacancy. 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 Financial inclusion is defined as the availability and equality of opportunities to access financial services. It refers to a process by which individuals and businesses can access appropriate, affordable, and timely financial products and service ...

policy and is a leading member of th
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 The Maya Declaration#Additional Commitment Pledges, Maya Declaration. By 30 December 2013, the bank's microprudential supervision functions will be transferred to Financial Services Authority (OJK). In the future, the bank will maintain Indonesian financial system and monetary stability through mixture of monetary and macroprudential instruments and policies. The Financial Services Authority institutive law (law n° 21 of 2011 enacted on 31 December 2012) followed the US$710 million baylout of Bank Century and the

receivership In law, receivership is a situation in which an institution or enterprise is held by a receiver—a person "placed in the custodial responsibility for the property of others, including tangible and intangible assets and rights"—especially in c ...

21 other national private banks.

Strategic objectives

The Bank describes its strategic objectives as bein

# 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 Machine An automated teller machine (ATM) or cash machine (in British English) is an electronic telecommunications device that enables customers of financial institutions to perform financial transactions, such as cash withdrawals, deposits, fun ...

s in

ASEAN ASEAN ( , ), officially the Association of Southeast Asian Nations, is a political and economic union of 10 member states in Southeast Asia, which promotes intergovernmental cooperation and facilitates economic, political, security, militar ...

countries, beginning with integration first in each country. On 16 January 2012 interconnection between

Bank Mandiri PT Bank Mandiri (Persero) Tbk or Bank Mandiri, headquartered in Jakarta, is the largest bank in Indonesia in terms of assets, loans and deposits. Total assets as of March 2021, were IDR 1.58 quadrillion (around US$110.56 billion). As ...

ATMs and

Bank Central Asia PT Bank Central Asia Tbk, commonly known as Bank Central Asia (BCA) is an Indonesian bank founded on 21 February 1957. It is considered as the largest privately owned bank in Indonesia. The Asian financial crisis in 1997 had a tremendous impact ...

ATMs ( Prima ATMs) was launched.

Bank Indonesia Liquidity Support

Bank Indonesia Liquidity Support is an

Indonesian government The term Government of Indonesia ( id, Pemerintah Indonesia) can have a number of different meanings. At its widest, it can refer collectively to the three traditional branches of government – the executive branch, legislative branch and ju ...

policy that was formulated with Bank Indonesia in the crisis period and executed by Bank Indonesia to rescue the

monetary Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular country or socio-economic context. The primary functions which distinguish money are ...

and

banking system A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital markets. Becaus ...

as well as the

economy An economy is an area of the production, distribution and trade, as well as consumption of goods and services. In general, it is defined as a social domain that emphasize the practices, discourses, and material expressions associated with the ...

as a whole. It was partly based on the instruction and command of the

President President most commonly refers to: *President (corporate title) * President (education), a leader of a college or university * President (government title) President may also refer to: Automobiles * Nissan President, a 1966–2010 Japanese ...

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 five representative offices in

New York City New York, often called New York City or NYC, is the most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the most densely populated major city in the Un ...

London London is the capital and List of urban areas in the United Kingdom, largest city of England and the United Kingdom, with a population of just under 9 million. It stands on the River Thames in south-east England at the head of a estuary dow ...

Tokyo Tokyo (; ja, 東京, , ), officially the Tokyo Metropolis ( ja, 東京都, label=none, ), is the capital and List of cities in Japan, largest city of Japan. Formerly known as Edo, its metropolitan area () is the most populous in the world, ...

Singapore Singapore (), officially the Republic of Singapore, is a sovereign island country and city-state in maritime Southeast Asia. It lies about one degree of latitude () north of the equator, off the southern tip of the Malay Peninsula, bor ...

and

Beijing } Beijing ( ; ; ), alternatively romanized as Peking ( ), is the capital of the People's Republic of China. It is the center of power and development of the country. Beijing is the world's most populous national capital city, with over 21 ...

. 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 old Jakarta ('' Kota'').

Indonesian offices

Bank Indonesia have branches in almost all major cities of Indonesia. File:Bank Indonesia in Medan.jpg, Bank Indonesia in

Medan Medan (; English: ) is the capital and largest city of the Indonesian province of North Sumatra, as well as a regional hub and financial centre of Sumatra. According to the National Development Planning Agency, Medan is one of the four mai ...

File:Gedung BI Banjarmasin.jpg, Bank Indonesia in

Banjarmasin ) , translit_lang1 = Other , translit_lang1_type1 = Jawi , translit_lang1_info1 = بنجر ماسين , settlement_type = City , motto = ''Kayuh Baimbai'' ( Banjare ...

File:Bank Indonesia Solo 2009 Bennylin 13.jpg, Bank Indonesia in Surakarta File:Bank Indonesia Yogyakarta.jpg, Bank Indonesia in

Yogyakarta Yogyakarta (; jv, ꦔꦪꦺꦴꦒꦾꦏꦂꦠ ; pey, Jogjakarta) is the capital city of Special Region of Yogyakarta in Indonesia, in the south-central part of the island of Java. As the only Indonesian royal city still ruled by a monarchy, ...

File:Bank Indonesia Lama di Padang.JPG, Bank Indonesia in

Padang Padang () is the capital and largest city of the Indonesian province of West Sumatra. With a Census population of 1,015,000 as of 2022, it is the 16th most populous city in Indonesia and the most populous city on the west coast of Sumatra. Th ...

File:COLLECTIE TROPENMUSEUM Kantoor van Bank Indonesia TMnr 10015484.jpg, Bank Indonesia in Palembang (1950s) File:COLLECTIE TROPENMUSEUM Het gemeentehuis en het kantoor van de Javasche Bank TMnr 10015457.jpg, Town Hall and Bank Indonesia in

(formerly De Javasche Bank) File:COLLECTIE TROPENMUSEUM Het kantoor van de Javasche Bank in Soerabaja TMnr 10015463.jpg, De Javasche Bank in Surabaya File:COLLECTIE TROPENMUSEUM De Javasche Bank te Malang. TMnr 60005905.jpg, De Javasche Bank in Malang File:COLLECTIE TROPENMUSEUM Gebouw van de Javasche Bank in Koetaradja Noord-Sumatra. TMnr 60008371.jpg, De Javasche Bank in Banda Aceh

Worldwide representative offices

* Singapore: 160 Robinson Road #28-05, SBF Center Singapore 068914. * 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. * Beijing: Fortune Financial Center Building Lt. 46, 5 Dongsanhuan Road, Chaoyang District, Beijing 100020

List of governors

Bibliography

* J. Soedradjad Djiwandono. 2005. ''Bank Indonesia and the Crisis: An Insider's View''. Singapore: Institute of Southeast Asian Studies. * Miranda S. Goeltom. 2008. ''Essays in Macroeconomic Policy: The Indonesian Experience.'' Jakarta: PT. Gramedia Pustaka Utama.

References

External links

Bank Indonesia official website
{{coord, 6, 10, 54, S, 106, 49, 17, E, type:landmark_source:kolossus-frwiki, display=title Banks of Indonesia

Indonesia Indonesia, officially the Republic of Indonesia, is a country in Southeast Asia and Oceania between the Indian and Pacific oceans. It consists of over 17,000 islands, including Sumatra, Java, Sulawesi, and parts of Borneo and New Guine ...

Banks established in 1953 Financial regulatory authorities of Indonesia Indonesian companies established in 1953