Bank Indonesia

Bank Indonesia (BI; literally Bank of Indonesia) is the central bank of the Republic of Indonesia. It replaced the Bank of Java in 1953, 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 granted the right to create a private bank in the Indies in 1826, which was named De Javasche Bank. 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.

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. Almost all buildings were designed by the Amsterdam architect Eduard Cuypers (1859–1927) in collaboration with M. J. Hulswit (1862–1921) and A. A. Fermont (1882–1967) in Batavia.[3][4]

Strategic objectives

The Bank describes its strategic objectives as being:[10]

1) Maintain monetary stability

2) Maintain the financial sustainability of the Bank of Indonesia

3) Strengthen the effectiveness of monetary management

4) Create a sound and effective banking system and financial system stability

5) Maintain the security and effectiveness of the payment system

6) Increase the effectiveness of Good Governance implementation

7) Strengthen the organisation and build highly competent human resources with the support of a knowledge-based work culture

8) 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 Machines in ASEAN countries, beginning with integration first in each country. On 16 January 2012 interconnection between Bank Mandiri ATMs and Bank Central Asia ATMs (Prima ATMs) was launched.[11]

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 and banking system as well as the economy as a whole. It was partly based on the instruction and command of the President 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 signed an agreement with Central Bank of Malaysia, Bank of Thailand, Bangko Sentral ng Pilipinas, Monetary Authority of Singapore, and the Reserve Bank of India 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.[12]

bank name	Bank Indonesia
headquarters	Jakarta, Indonesia
established	January 24, 1828 (Bank of Java) July 1, 1953 (current form)
executive title	Governor
executive	Perry Warjiyo‡R1R‡
bank of	Indonesia
currency	Indonesian rupiah
currency iso	IDR
reserves	USD 136.4 billion‡R2R‡
website	bi.go.id

History

Bank of Java

Bank Indonesia

Organization

Strategic objectives

National Payment Gateway

Bank Indonesia Liquidity Support

Project Nexus

Offices

Indonesian offices

Worldwide representative offices

List of governors

Bibliography

See also

External links

References