Bank Indonesia has a special independent status as a state institution separate from the government to effectively perform its role as the central bank of Indonesia. While independent, it maintains close coordination with government bodies like the House of Representatives and provides regular reporting. It also collaborates with other institutions through agreements to coordinate on economic, banking and financial issues. Bank Indonesia implements corporate social responsibility programs focused on supporting small and medium enterprises, education, and the environment to benefit communities and fulfill its ethical responsibilities.

1. BANK INDONESIA’S
POSITION AS A
STATE INSTITUTION
Wahono Diphayana

2. From a constitutional standpoint, Bank
Indonesia’s status as an independent
institution is not parallel with higher state
institutions such as the House of
Representatives, National Audit Office
and Supreme Court.
Bank Indonesia’s status is also unlike any
State Department as Bank Indonesia’s
official position is separate from the
Government.

3. Such special status is required to enable
Bank Indonesia to perform its roles and
functions as the Monetary Authority more
effectively and efficiently.
Despite its status as an independent state
institution, Bank Indonesia maintains a
close working relationship and tight
coordination with the House of
Representatives, National Audit Office,
Government and other relevant parties.

4. With respect to its relationship with the
President and House of
Representatives, at the beginning of
each financial year Bank Indonesia
delivers in writing an evaluation of
monetary policy implementation and
future monetary policy planning.
In particular to the House of
Representatives, Bank Indonesia’s
role and responsibilities are reported
quarterly or as requested by the
House.

5. Bank Indonesia also reports its
projected and actual annual budget
to the Government and House of
Representatives. Furthermore, Bank
Indonesia is obliged to disclose its
annual financial report to the National
Audit Office.

6. BI’s Relationship with the Government:
Financial Relationship
Regarding its financial relationship with the
Government, Bank Indonesia assists in the issuance
and placement of government bonds in order to fund
the State Budget. However, Bank Indonesia is
prohibited from purchasing government bonds

7. BI’s Relationship with the Government:
Financial Relationship
Bank Indonesia also acts as the Government’s cashier,
administrating the government’s accounts held at Bank
Indonesia. At the Government’s behest, Bank Indonesia is
permitted to receive foreign loans for and on behalf of the
Indonesian Government.
However, Bank Indonesia’s role is centrally focused on
uninterrupted monetary control effectiveness, extending
credit to the Government to overcome deficit spending is
no longer under the auspices of Bank Indonesia.

8. BI’s Relationship with the Government:
Independence within Interdependence
Despite Bank Indonesia’s status as an
independent state institution, consultative
coordination with the Government remains
essential, as Bank Indonesia’s responsibilities are
an inseparable part of holistic national economic
policies.

9. BI’s Relationship with the Government:
Independence within Interdependence
Coordination between Bank Indonesia and the Government
is facilitated through cabinet sessions to discuss economic,
banking and financial issues related to Bank Indonesia’s
roles and functions. The Government may seek bank
Indonesia’s opinion at the cabinet sessions. In addition,
Bank Indonesia may provide input, opinion as well as
recommendations regarding the Planned State Budget as
well as other policies related to its mandate.

10. BI’s Relationship with the Government:
Independence within Interdependence
Conversely, the Government may attend Bank
Indonesia’s Board of Governors’ Meeting with the
right to be heard but no right to vote. Therefore,
independence is strongly influenced by a stable
proportional working relationship between Bank
Indonesia, the Government and other related
institutions.

11. Collaboration with other Institutions
Realizing the importance of support from various parties to
ensure success in carrying out its duties, Bank Indonesia
continuously collaborates and coordinates with many state
institutions and other elements of society. Several
collaborations are set out in a Memorandum of
Understanding (MoU), Joint Decree or some other kind of
formal agreement, which are intended to create synergy
and clarify task distribution among institutions as well as
encourage effective legal enforcement.

12. Collaboration with other Institutions
Ongoing collaborations include the following:
• Treasury Department: MoU detailing Target Setting,
Supervision and Inflation Control Mechanisms in Indonesia;
MoU on Bank Indonesia as an agent to process government
foreign loans and grants; and a Joint Decree on the
administration of government bond issuances in order to
improve the soundness of the banking sector.
• Supreme Court & National Police: Joint Decree setting out
collaboration to handle criminal activity in the banking sector.

13. Collaboration with other Institutions
Ongoing collaborations include the following:
• Indonesian National Police and State Intelligence Agency:
MoU on the Eradication of counterfeit money.
• Coordinating Ministry for Public Welfare, Ministry of
Cooperatives and SMEs: MoU on MSME Empowerment and
Development
• Association of SUN Traders (Himdasun): MoU on the
formulation of a Master Repurchase Agreement (MRA)
• Joint Decree of Minister of Finance & Governor of Bank
Indonesia Concerning Coordination of Government Cash
Management

14. BANK INDONESIA & PUBLIC

15. WHAT AND WHY: BANK INDONESIA’S CORPORATE
SOCIAL RESPONSIBILITY (CSR) PROGRAM?
“…the business community, during the last half of century, has transformed
into the most dominant institution on the planet. The dominant institution
in any society has to take responsibility for joint interest…every decision
made, every action taken has to be seen within the context of such
responsibility …”
These were the sentiments expressed by Dr. David C. Korten, the author of
the best-selling book “When Corporations Rule the World”. Korten is
highlighting how corporate activity influences the quality of life of an
individual, society as a whole and even the world. This phenomenon is
Corporate Social Responsibility (CSR) in a nutshell.

16. WHAT AND WHY: BANK INDONESIA’S CORPORATE
SOCIAL RESPONSIBILITY (CSR) PROGRAM?
Similarly, social responsibility seems to be growing almost
daily at Bank Indonesia, which has more than just legal and
monetary economic responsibilities. There are also ethical,
social and discretionary responsibilities, which are not
legally obligatory but performed out of self-desire.

17. WHAT AND WHY: BANK INDONESIA’S CORPORATE
SOCIAL RESPONSIBILITY (CSR) PROGRAM?
CSR awareness has become a global trend along with the efforts to
prioritize stakeholders. Bank Indonesia’s CSR program is a form of
Good Corporate Governance, as well as supporting the achievement of
the Millennium Goals Development; one of which is to halve poverty by
2015 through MSME-focused CSR, improve public education through
education-focused CSR and preserve the environment through
environment-focused CSR. Bank Indonesia’s CSR program includes
realigning itself with the stakeholders’ requirements and expectations in
relation to issues of ethics, social issues, education, the environment as
well as the economy.

18. WHAT AND WHY: BANK INDONESIA’S CORPORATE
SOCIAL RESPONSIBILITY (CSR) PROGRAM?
BI-CSR Program Theme
Based on the belief that communication is an essential factor for Bank Indonesia to
maintain its relationship and demonstrate its care in the community, BI CSR aims to
prioritize activities that benefit both parties with the all-embracing goals of:
Improving the public’s economic life, particularly the middle to low-income strata.
• Assisting government programs in building competent human resources able to
compete internationally.
• Improving and maintaining the ecosystem through collaboration with the public.
Therefore, Bank Indonesia CSR Program is reflected by the slogan:
•
• BI COMMUNICATE – eCOsystem, sMall MediUm eNterprIse, and eduCATion for
peoplE

19. WHAT AND WHY: BANK INDONESIA’S CORPORATE
SOCIAL RESPONSIBILITY (CSR) PROGRAM?
BI Study Visit Program
Study Visits to Bank Indonesia’s Central Office are a part of Bank
Indonesia’s endeavors to educate the public on subjects related to the
Central Bank’s role in the monetary, banking and payment systems.
Bank Indonesia provides an opportunity for the general public to visit
the Central Office every Tuesday and Thursday according to the
procedures set in place.

20. WHAT AND WHY: BANK INDONESIA’S CORPORATE
SOCIAL RESPONSIBILITY (CSR) PROGRAM?
BI Care Coverage (CSR-BI)
This article provides actual news on BI-CSR activities in the
city as well as in rural areas, including other pertinent
information regarding CSR-BI (CSR-BI News), available in
Bahasa

21. WHAT AND WHY: BANK INDONESIA’S CORPORATE
SOCIAL RESPONSIBILITY (CSR) PROGRAM?
Code of Conduct
Bank Indonesia Code of Conduct is a standard guideline which reflects the
integrity of Bank Indonesia Employees. Any Bank Indonesia Employee shall
be responsible not only for understanding this Code of Conduct but also for
applying it in daily activities.
• Any Employee is not allowed to abuse position, authority, and/or facility
provided by Bank Indonesia.
• Any Bank Indonesia Official is required to report his/her wealth to Bank
Indonesia and/or the Corruption Eradication Commission (KPK).

22. WHAT AND WHY: BANK INDONESIA’S CORPORATE
SOCIAL RESPONSIBILITY (CSR) PROGRAM?
Code of Conduct
• Any Employee is not allowed to ask for/receive, give approval to
receive, permit or let family to ask for/receive facility and/or other
matters of monetary value from individual person or institution which is
recognized or reasonably suspected to have relation either directly or
indirectly with the concerned Employee’s position or job.
• Any Employee is required to keep Bank Indonesia secrecy for matters
categorized confidential.
• Any Employee is not allowed to become member, organizer of political
party, and/or to conduct activity for the interest of political party.

23. Thank You
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