Bank Indonesia (BI) is the

central bank A central bank, reserve bank, national bank, or monetary authority is an institution that manages the monetary policy of a country or monetary union. In contrast to a commercial bank, a central bank possesses a monopoly on increasing the mo ...

of the Republic of Indonesia. It replaced in 1953 the Bank of Java (, 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 (; ), was a Dutch Empire, Dutch colony with territory mostly comprising the modern state of Indonesia, which Proclamation of Indonesian Independence, declared independence on 17 Au ...

History

Bank of Java

King William I of the Netherlands 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

. The bank regulated and issued the Netherlands Indies gulden. 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, now

Museum Bank Indonesia Bank Indonesia Museum (, occasionally called Museum BI), also called in English officially as BI Museum, is a bank museum located in Jakarta, Indonesia. It was founded by Bank Indonesia and opened on 21 July 2009. The museum is housed in a heritag ...

Jakarta Jakarta (; , Betawi language, Betawi: ''Jakartè''), officially the Special Capital Region of Jakarta (; ''DKI Jakarta'') and formerly known as Batavia, Dutch East Indies, Batavia until 1949, is the capital and largest city of Indonesia and ...

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 Prinseng ...

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

Amsterdam Amsterdam ( , ; ; ) is the capital of the Netherlands, capital and Municipalities of the Netherlands, largest city of the Kingdom of the Netherlands. It has a population of 933,680 in June 2024 within the city proper, 1,457,018 in the City Re ...

File:COLLECTIE TROPENMUSEUM Kantoor van de Javasche Bank in Bandoeng TMnr 60016843.jpg, Branch of De Javasche Bank in

Bandung Bandung is the capital city of the West Java province of Indonesia. Located on the island of Java, the city is the List of Indonesian cities by population, fourth-most populous city and fourth largest city in Indonesia after Jakarta, Surabay ...

, 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 three 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 the availability and equality of opportunities to access financial services. It refers to processes by which individuals and businesses can access appropriate, affordable, and timely financial products and services—which ...

policy and is a 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 The Financial Services Authority (FSA) was a quasi-judicial body accountable for the regulation of the financial services industry in the United Kingdom between 2001 and 2013. It was founded as the Securities and Investments Board (SIB) in 1985 ...

(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" – especia ...

21 other national private banks.

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 Machine An automated teller machine (ATM) is an electronic telecommunications device that enables customers of financial institutions to perform financial transactions, such as cash withdrawals, deposits, funds transfers, balance inquiries or account ...

s in

ASEAN The Association of Southeast Asian Nations, commonly abbreviated as ASEAN, is a regional grouping of 10 states in Southeast Asia "that aims to promote economic and security cooperation among its ten members." Together, its member states r ...

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 2022, were 1.992 Trillion rupiah (around US$133 Billion). As of 2022, Bank Man ...

ATMs and Bank Central Asia ATMs ( Prima ATMs) was launched.

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 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: med ...

and

banking system A bank is a financial institution that accepts Deposit account, 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 m ...

as well as the

economy An economy is an area of the Production (economics), production, Distribution (economics), distribution and trade, as well as Consumption (economics), consumption of Goods (economics), goods and Service (economics), services. In general, it is ...

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: Arts and entertainment Film and television *'' Præsident ...

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).

Project Nexus

The

Bank for International Settlements The Bank for International Settlements (BIS) is an international financial institution which is owned by member central banks. Its primary goal is to foster international monetary and financial cooperation while serving as a bank for central bank ...

signed an agreement with Central Bank of Malaysia,

Bank of Thailand The Bank of Thailand (BOT; Abbreviation, abbr. ธปท.; , ) is the central bank of Thailand. History The Bank of Thailand (BOT) was first set up as the Thai National Banking Bureau. The Bank of Thailand Act was promulgated on 28 April 1942 ...

, Bangko Sentral ng Pilipinas,

Monetary Authority of Singapore The Monetary Authority of Singapore or (MAS), is the central bank and financial regulatory authority of Singapore. It administers the various statutes pertaining to money, banking, insurance, securities and the financial sector in general, as ...

, and the

Reserve Bank of India Reserve Bank of India, abbreviated as RBI, is the central bank of the Republic of India, and regulatory body responsible for regulation of the Indian banking system and Indian rupee, Indian currency. Owned by the Ministry of Finance (India), Min ...

on 30 June 2024 as founding member of Project Nexus, a multilateral international initiative to enable retail cross-border payments. Bank Indonesia involved as a special observer. The platform, which is expected to go live by 2026, will interlink domestic fast payment systems of the member countries.

Offices

BI operates 37 offices across Indonesia, and five representative offices in

New York City New York, often called New York City (NYC), is the most populous city in the United States, located at the southern tip of New York State on one of the world's largest natural harbors. The city comprises five boroughs, each coextensive w ...

London London is the Capital city, capital and List of urban areas in the United Kingdom, largest city of both England and the United Kingdom, with a population of in . London metropolitan area, Its wider metropolitan area is the largest in Wester ...

Tokyo Tokyo, officially the Tokyo Metropolis, is the capital of Japan, capital and List of cities in Japan, most populous city in Japan. With a population of over 14 million in the city proper in 2023, it is List of largest cities, one of the most ...

Singapore Singapore, officially the Republic of Singapore, is an island country and city-state in Southeast Asia. The country's territory comprises one main island, 63 satellite islands and islets, and one outlying islet. It is about one degree ...

and

Beijing Beijing, Chinese postal romanization, previously romanized as Peking, is the capital city of China. With more than 22 million residents, it is the world's List of national capitals by population, most populous national capital city as well as ...

. In addition, Bank Indonesia also operates several museums housed in the former De Javasche Bank office buildings, such as

(located in the former De Javasche Bank head office building in old Jakarta),

Surabaya Surabaya is the capital city of East Java Provinces of Indonesia, province and the List of Indonesian cities by population, second-largest city in Indonesia, after Jakarta. Located on the northeastern corner of Java island, on the Madura Strai ...

, and

Padang Padang () is the Capital city, capital and largest city of the Indonesian Provinces of Indonesia, province of West Sumatra. It had a population of 833,562 at the 2010 CensusBiro Pusat Statistik, Jakarta, 2011. and 909,040 at the 2020 Census;Bad ...

Indonesian offices

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

Medan Medan ( , ) is the capital city, capital and largest city of the Indonesian Provinces of Indonesia, province of North Sumatra. The nearby Strait of Malacca, Port of Belawan, and Kualanamu International Airport make Medan a regional hub and multi ...

File:Gedung BI Banjarmasin.jpg, Bank Indonesia in Banjarmasin File:Bank Indonesia Solo 2009 Bennylin 13.jpg, Bank Indonesia in

Surakarta Surakarta (Javanese script, Javanese: , Pegon script, Pegon: ), known colloquially as Solo (Javanese script, Javanese: ; ), is a major List of regencies and cities of Indonesia, city in Central Java, Indonesia. The city adjoins Karanganyar Reg ...

File:Bank_Indonesia_Building,_Yogyakarta_(2025)_-_img_03.jpg, Bank Indonesia in

Yogyakarta Yogyakarta is the capital city of the 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 Hamengkubuwono, a monarchy, Yogyakarta is regarded as an importan ...

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

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

File:COLLECTIE TROPENMUSEUM De Javasche Bank te Malang. TMnr 60005905.jpg, De Javasche Bank in

Malang Malang (; , ), historically known as Tumapel, is an inland 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 the Singhasari, Singhasari K ...

File:COLLECTIE TROPENMUSEUM Gebouw van de Javasche Bank in Koetaradja Noord-Sumatra. TMnr 60008371.jpg, De Javasche Bank in

Banda Aceh Banda Aceh (; , Jawi script, Jawi: ) 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 35 metres. The city covers an area of and had a population of 223,446 peopl ...

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: 200 Vesey Street 25th Floor New York 10285. * 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
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Indonesia Indonesia, officially the Republic of Indonesia, is a country in Southeast Asia and Oceania, between the Indian Ocean, Indian and Pacific Ocean, Pacific oceans. Comprising over List of islands of Indonesia, 17,000 islands, including Sumatra, ...

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