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 ba ...
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
The Dutch East Indies, also known as the Netherlands East Indies ( nl, Nederlands(ch)-Indië; ), was a Dutch colony consisting of what is now Indonesia. It was formed from the nationalised trading posts of the Dutch East India Company, which ...
.
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 Dutch East Indies, also known as the Netherlands East Indies ( nl, Nederlands(ch)-Indië; ), was a Dutch colony consisting of what is now Indonesia. It was formed from the nationalised trading posts of the Dutch East India Company, which ...
. 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
Jakarta (; , bew, Jakarte), officially the Special Capital Region of Jakarta ( id, Daerah Khusus Ibukota Jakarta) is the capital and largest city of Indonesia. Lying on the northwest coast of Java, the world's most populous island, 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 of the Netherlands, capital and Municipalities of the Netherlands, most populous city of the Netherlands, with The Hague being the seat of government. It has a population ...
File:COLLECTIE TROPENMUSEUM Kantoor van de Javasche Bank in Bandoeng TMnr 60016843.jpg, Branch of De Javasche Bank in Bandung
Bandung ( su, ᮘᮔ᮪ᮓᮥᮀ, Bandung, ; ) is the capital city of the Indonesian province of West Java. It has a population of 2,452,943 within its city limits according to the official estimates as at mid 2021, making it the fourth most ...
, 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
The rupiah (Currency symbol, symbol: Rp; ISO 4217, currency code: IDR) is the official currency of Indonesia. It is issued and controlled by Bank Indonesia. The name "Rupee, rupiah" is derived from the Sanskrit word for silver, (). Sometimes, I ...
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
The Financial Services Authority (FSA) was a quasi-judicial body accountable for the financial regulation, regulation of the financial services industry in the United Kingdom between 2001 and 2013. It was founded as the Securities and Investmen ...
(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 ca ...
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 as ...
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 ful ...
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 List of United States cities by population, most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the L ...
,
London
London is the capital and 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 down to the North Sea, and has been a majo ...
,
Tokyo
Tokyo (; ja, 東京, , ), officially the Tokyo Metropolis ( ja, 東京都, label=none, ), is the capital and largest city of Japan. Formerly known as Edo, its metropolitan area () is the most populous in the world, with an estimated 37.468 ...
,
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, borde ...
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 main ...
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
Surakarta ( jv, ꦯꦸꦫꦏꦂꦠ), known colloquially as Solo ( jv, ꦱꦭ; ), is a city in Central Java, Indonesia. The 44 km2 (16.2 sq mi) city adjoins Karanganyar Regency and Boyolali Regency to the north, Karanganyar Regency and Sukoh ...
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 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 main ...
(formerly De Javasche Bank)
File:COLLECTIE TROPENMUSEUM Het kantoor van de Javasche Bank in Soerabaja TMnr 10015463.jpg, De Javasche Bank in Surabaya
Surabaya ( jv, ꦱꦸꦫꦧꦪ or jv, ꦯꦹꦫꦨꦪ; ; ) is the capital city of the Provinces of Indonesia, Indonesian province of East Java and the List of Indonesian cities by population, second-largest city in Indonesia, after Jakarta. L ...
File:COLLECTIE TROPENMUSEUM De Javasche Bank te Malang. TMnr 60005905.jpg, De Javasche Bank in Malang
Malang (; ) is a landlocked List of regencies and cities of Indonesia, city in the Indonesian Provinces of Indonesia, province of East Java. It has a history dating back to the age of Singhasari, Singhasari Kingdom. It is the second most popul ...
File:COLLECTIE TROPENMUSEUM Gebouw van de Javasche Bank in Koetaradja Noord-Sumatra. TMnr 60008371.jpg, De Javasche Bank in Banda Aceh
Banda Aceh ( Acehnese: ''Banda Acèh'', Jawoë: كوتا بند اچيه) is the capital and largest city in the province of Aceh, Indonesia. It is located on the island of Sumatra and has an elevation of . The city covers an area of and had ...
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.
See also
*
Economy of Indonesia
The economy of Indonesia is the largest in Southeast Asia and is one of the emerging market economies. As a middle-income country and member of the G20, Indonesia is classified as a newly industrialized country. It is the 17th largest economy ...
*
Indonesian rupiah
The rupiah (Currency symbol, symbol: Rp; ISO 4217, currency code: IDR) is the official currency of Indonesia. It is issued and controlled by Bank Indonesia. The name "Rupee, rupiah" is derived from the Sanskrit word for silver, (). Sometimes, I ...
*
List of banks in Indonesia
This is a list of major banks in Indonesia. There are 120 commercial banks in Indonesia (4 state owned banks and 117 private banks). Two of the state owned banks have Islamic banking units. Of the 26 government regional banks, 15 have Islamic ban ...
*
Payment system
A payment system is any system used to settle financial transactions through the transfer of monetary value. This includes the institutions, instruments, people, rules, procedures, standards, and technologies that make its exchange possible.Biago ...
*
Real-time gross settlement
Real-time gross settlement (RTGS) systems are specialist Electronic funds transfer, funds transfer systems where the transfer of money or securities takes place from one bank to any other bank on a "real-time" and on a "gross (economics), gross" ba ...
*
Netherlands Trading Company
The Netherlands Trading Society ( nl, Nederlandsche Handel-Maatschappij or NHM) was a Dutch trading and financial company, established in 1824 in The Hague by King William I to promote and develop trade, shipping and agriculture. For the next 140 ...
*
Nederlandsch-Indische Handelsbank
The Nederlandsch-Indische Handelsbank (NIHB, ) was a Dutch bank established in 1863 to finance trade between the Netherlands and the Dutch East Indies. During most of the colonial period, it was the second-largest of the “big three” commerci ...
References
External links
Bank Indonesia official website
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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