B AB 1
BANK INDONESIA
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I. BANK INDONESIA
Bank Indonesia BI is the Central Bank of the Republic of Indonesia, an independent state institution whereas in
carrying its duties and authorities is free from the intervention of the government and or other parties, with the exception of
other matters explicitly stipulated in Act concerning BI. A. Mission and Vision of BI
1. Mission To reach and to maintain rupiah value stability
through the maintenance of monetary stability and development of inancial system stability toward a
long-term sustainable national building.
2. Vision To become a Central Bank Institution that is credible
both nationally and internationally through the strengthening of strategic values owned, as well as the
achievement of inlation that is low and stable.
B. Strategic Values
Values which become the fundamentals of Bank Indonesia, the management and employees to act and behave to
achieve its mission and vision comprising of Competency, Integrity, Transparency, Accountability, and Cohesiveness
KITA-Kompak.
C. Important Duties of BI
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1. Establish and implement policy on monetary; 2. Organize and maintain the smooth operations of the
payment system; 3. Regulate and Supervise banks
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Detailed Description of BI Duties 1. Establish monetary targets by taking into account
inlation rate targets, conducting monetary control, extending credits or inancing to banks based on
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Basic Important Duties of BI based on Act No. 23 Year 1999 concerning Bank
Indonesia, as last amended by Act No. 6 Year 2009.
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Act No. 21 Year 2011 dated 22 November 2011 concerning Financial Service Authorities has been issued which among others govern the duty authorities on
regulation and supervision of banks.
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Sharia Principles in order to overcome diiculties in a short-term funding, providing facilities of
Government-funded emergency inancing in case a Bank experiencing inancial diiculties which has
a systemic impact and potentially lead to a crisis endangering the inancial system, implementing
foreign exchange rate policy, and managing foreign exchange reserves.
2. Determine the use of payment instruments, govern inter-bank clearing system, organize clearing activities,
undertake inal settlement of inter-banks payment transactions, and issue, circulate, revoke, withdraw
and annihilate Rupiah from circulation.
3. Grant and revoke licenses on institutional and certain business activities of banks, establish regulation,
perform supervision of banks and impose sanctions to banks in accordance with the provisions of laws and
regulations.
D. Organization of Bank Indonesia
BI is led by a Board of Governors consisted of one Governor, one Senior Deputy Governor, and no
less than 4 or no more than 7 Deputy Governors nominated and appointed by the President with the
approval of the People Representative Council DPR.
In a broad outline, BI duties are performed through 4 sectors monetary, banking, payment system and
internal management, Bank Indonesia Representative Oices KPw – Domestic and Overseas all of which are
responsible to the Board of Governors.
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Indonesian Bank
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2013
Figure 1 - Bank Indonesia Organization Structure
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