Explaining the function of Bank Indonesia

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BANK INDONESIA FUNCTION
Wahono Diphayana

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BANK INDONESIA VISION
To be a credible institution and the best
central bank in the region by strengthening
the strategic values held as well as through
the achievement of low inflation along with a
stable exchange rate.

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BANK INDONESIA MISSION
1. To achieve rupiah exchange rate stability and
maintain the efficacy of monetary policy transmission
in order to drive quality economic growth.
2. To nurture an effective and efficient national financial
system that can withstand internal and external
shocks in order to support the allocation of
funding/financing that contributes to national
economic stability and growth

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BANK INDONESIA MISSION
3. To ensure a secure, efficient and smooth payment
system that contributes to the domestic economy and
helps maintain monetary as well as financial system
stability whilst broadening access in the national
interest.
4. To build and maintain the organisation and human
resources of Bank Indonesia, who are performance
based and honour integrity, as well as to enforce good
corporate governance in the implementation of tasks
as mandated in prevailing laws.

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BANK INDONESIA
STRATEGIC OBJECTIVES
To realize its Mission, Vision and Strategic Values, Bank
Indonesia has stipulated the following medium-long term
strategic objectives :
1. Strengthen inflation control in terms of demand and
supply
2. Maintain exchange rate stability
3. Foster deep and efficient financial markets
4. Maintain financial system stability, underpinned by solid
payment system surveillance
5. Realise directed, efficient and synergetic financial
inclusion

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BANK INDONESIA
STRATEGIC OBJECTIVES
6. Maintain a payment system that is secure, efficient and
free from disruption
7. Strengthen accountable financial management at Bank
Indonesia
8. Realise an effective and efficient work process
supported by Information Systems, culture and
governance
9. Expedite the availability of competent human resources
10. Build and strengthen strategic alliances and enhance
the public perception of BI
11. Ensure a smooth transition of the supervisory function to
the Financial Services Authority (OJK)

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OBJECTIVES AND TASKS OF
BANK INDONESIA
Single Objective
In its capacity as central bank, Bank Indonesia has one
single objective of achieving and maintaining stability of the
Rupiah value.
The stability of the value of the Rupiah comprises two
aspects, one is stability of Rupiah value against goods and
services and the other is the stability of the exchange rate of
the Rupiah against other currencies.

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OBJECTIVES AND TASKS OF
BANK INDONESIA
Single Objective
The first aspect is as reflected by the rate of inflation and the
second aspect is as reflected by the development of Rupiah
exchange rate against other currencies.
The prescribed single objective is intended to establish a
target that is clear and to be achieved by Bank Indonesia
within its limits and responsibilities. Thus way, the
achievement of the objective of Bank Indonesia will be
easily measurable.

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OBJECTIVES AND TASKS OF
BANK INDONESIA
The Three Main Pillars
In the pursuit of the objective, Bank Indonesia is supported
by three pillars, representing its three sectors of task. These
three sectors (see image below) have to be integrated to
ensure that the objective of achieving and maintaining a
stable value of Rupiah can be achieved effectively and
efficiently

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OBJECTIVES AND TASKS OF
BANK INDONESIA
In the pursuit of the objective, Bank Indonesia is supported by three p
representing its three sectors of task. These three sectors (see image below) ha
be integrated to ensure that the objective of achieving and maintaining a stable v
of Rupiah can be achieved effectively and efficiently
The Three Main Pillars

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BANK INDONESIA ACCOUNTABILITY
The new Bank Indonesia Act demands that Bank Indonesia
must always adhere to the principles of accountability and
transparency in implementing its duties, authorities and
budget. The accountability and transparency demanded
from Bank Indonesia are intended to increase all
stakeholders' participation in overseeing every policy taken
by the Bank.

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BANK INDONESIA ACCOUNTABILITY
From the aspect of implementing duties and authority,
accountability and transparency are applied in the form of
open information pertaining the evaluation of monetary
policy implemented in the previous year, and monetary
policy plan and monetary target for the next year, to public
via mass media at the commencement of each year. Such
information is also reported directly to the President and
The House of Representatives - DPR.

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BANK INDONESIA ACCOUNTABILITY
Under the supervisory function of The House of
Representatives, Bank Indonesia is required by law to
submit a quarterly -- or as per request -- progress report on
implementation of its duties and responsibilities.

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BANK INDONESIA ACCOUNTABILITY
For transparency in budgeting, Bank Indonesia is required
to submit its annual budget to The House of
Representatives. In addition, Bank Indonesia Annual Report
is submitted to State Auditors (BPK) for auditing and the
result is announced to the public through mass media. Bank
Indonesia is also obliged to prepare a weekly balance sheet
for publication in the State Gazette (Berita Negara Republik
Indonesia).

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BANK INDONESIA ACCOUNTABILITY
As further steps toward transparency, Bank Indonesia
periodically publishes various publications such as the
Weekly Report (Laporan Mingguan), Monthly Indonesian
Financial and Economic Statistics, Monthly Review of
Monetary Policy, Quarterly Monetary and Economic
Progress, Quarterly Report on Monetary Policy Progress,
and Annual Report. Bank Indonesia's homepage
(http://www.bi.go.id) is accessible for members of the public
who wish to obtain data and information from the Bank.

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Thank You