Explaining the history and organization of Bank Indonesia

1. Powerpoint Templates Page 1Powerpoint Templates
HISTORY &
ORGANIZATION
OF BANK
INDONESIA
Wahono Diphayana

2. Powerpoint Templates Page 2
HISTORY OF BANK INDONESIA
In 1746, VOC in Java established De Bank van
Leening which subsequently turned into De
Bank Courant en Bank van Leening in 1752.
This was the first bank set up in the archipelago
and the pioneer the banking sector for the
following years.

3. Powerpoint Templates Page 3
HISTORY OF BANK INDONESIA
On 24 January 1828, the Makasar
Administration founded a circulation bank called
De Javasche Bank (DJB). For decades this
bank was operating and developing based upon
a exclusive right of the Dutch Kingdom rulers.
Such exclusive became a act, namely the DJB
Bank Act of 1922.

4. Powerpoint Templates Page 4
HISTORY OF BANK INDONESIA
The Japanese occupation virtually halted the DJB
activities and the Dutch Indies banking for a while.
During the revolution era, the Dutch Indies
Administration was confronted with the power dualism,
between the Republic of Indonesia (RI) and
Nederlansche Indische Civil Administrative (NICA).
Likewise, the banking institution was divided into two,
DJB and other Dutch Banks in the NICA territories, and
“Jajasan Poesat Bank Indonesia” and Bank Negara
Indonesia in the Republic of Indonesia’s territories.

5. Powerpoint Templates Page 5
HISTORY OF BANK INDONESIA
The Round Table Conference in 1949 ended the
clashes between Indonesian and Holland. As a
result, DJB was determined as the Central Bank
for the Republic Indonesian Serikat (RIS).
This status remained until the return of the
Republic of Indonesia to the unitary state.
Afterwards, as sovereign nation and state, the
Republic of Indonesia nationalized its Central
Bank. As from 1 July 1953, DJB became Bank
Indonesia as the Central Bank for the Republic
of Indonesia.

6. Powerpoint Templates Page 6
HISTORY OF BANK INDONESIA
A new chapter in the history of Bank Indonesia
as an independent central bank was initiated
when a new Central Bank Act, the UU No.
23/1999 on Bank Indonesia, was enacted on
May 17, 1999 and have which has been
amended with UU No.3/2004 on January 15,
2004. The Act confers it the status and position
as an independent state institution and freedom
from interference by the Government or any
other external parties.

7. Powerpoint Templates Page 7
HISTORY OF BANK INDONESIA
As an independent state institution, Bank
Indonesia is fully autonomous in formulating and
implementing each of its task and authority as
stipulated in the Act.
External parties are strictly prohibited from
interfering with Bank Indonesia's implementation
of its tasks, and Bank Indonesia has the duty to
refuse or disregard any attempt of interference
in any form by any party.

8. Powerpoint Templates Page 8
HISTORY OF BANK INDONESIA
Such unique status and position are necessary
so that Ba​nk Indonesia can implement its role
and function as monetary authority more
effectively and efficiently

9. Powerpoint Templates Page 9
BANK INDONESIA AS A LEGAL ENTITY
Whether as a public legal entity or as civil legal
entity, the position of Bank Indonesia is
regulated by the statutes.
As a public legal entity, Bank Indonesia has the
authority to issue policy rules and regulations,
which are binding to the public - at - large.
As a civil legal entity, Bank Indonesia is able to
represent itself in and outside the court of law.

10. Powerpoint Templates Page 10
THE ORGANIZATION OF
BANK INDONESIA

11. Powerpoint Templates Page 11
BOARD OF GOVERNORS
Appointment and Dismissal of Board of
Governors
In implementing its duties and responsibilities, Bank
Indonesia is managed by the Board of Governors. The
Board is led by a Governor who is assisted by a Senior
Deputy Governor as the Vice-Governor, and at least four
and not more than seven Deputy Governors.
The Members of the Board of Governors shall be appointed
for a term of office of 5 (five) years and may be reappointed
to the same position for no more than 1 (one) subsequent
term of office.

12. Powerpoint Templates Page 12
BOARD OF GOVERNORS
Appointment and Dismissal of Board of
Governors
The Governor, Senior Deputy Governor, and Deputy
Governors shall be proposed and appointed by the
President with the approval of the House of
Representatives. Candidates for Deputy Governor shall be
proposed by the President pursuant to a recommendation
of the Governor (vide Article 41 Act No.3, year 2004
amandment to Act No.23, year 1999).

13. Powerpoint Templates Page 13
BOARD OF GOVERNORS
Appointment and Dismissal of Board of
Governors
A member of the Board of Governors may not be dismissed
during his or her term of office, unless the person are
resigns, convicted of a felony, unable to attend in person for
a period of 3 (three) consecutive months without
reasonable cause, is declared bankrupt or unable to settle
liabilities to creditors, or is permanently incapacitated.

14. Powerpoint Templates Page 14
BOARD OF GOVERNORS
Decision Making Process
As the Bank’s highest decision making forum, the Board of
Governors Meeting is conducted at least once every month
to deliberate and 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 Board’s decision making process puts emphasis on
deliberations - to reach - agreement. When deliberations fail
to produce an agreement, the Governor will exercise his
authority to decide for the Board

15. Powerpoint Templates Page 15
BOARD OF GOVERNORS PROFILE
Governor :
Agus D.W. Martowardojo
Senior Deputy Governor :
Mirza Adityaswara
Deputy Governor :
Ronald Waas

16. Powerpoint Templates Page 16
BOARD OF GOVERNORS PROFILE
Deputy Governor :
Perry Warjiyo
Deputy Governor :
Hendar
Deputy Governor :
Erwin Rijanto

17. Powerpoint Templates Page 17
ORGANIZATION STRUCTURE OF BI

18. Powerpoint Templates Page 18
BANK INDONESIA ACTS
1. Acts Nr. 6 / 2009 on Bank Indonesia
2. Acts Nr. 3 / 2004 Concerning Amendment to Act of the
Republic of Indonesia Number 23 of 1999 Concerning
Bank Indonesia
3. Acts Nr. 23 / 1999 on Bak Indonesia
4. Acts Nr. 21 / 2008 on Sharia (Islamic) Banking
5. Acts Nr. 3 / 2011 Cocerning Fund Transfer

19. Powerpoint Templates Page 19
INTERNATIONAL COLLABORATION
UNDERTAKEN BY BANK INDONESIA
Bank Indonesia advocates collaboration with international
institutions to buttress task performance continuity related
to economic, monetary and banking fields. Bank Indonesia
currently participates in international collaboration covering
the following aspects:
1. Joint intervention for foreign exchange market stability.
2. Settlement of cross-border transactions.
3. Correspondent relationships.
4. Information exchange on subjects related to the roles
and functions of the central bank
5. Training/research in monetary and payment system
sectors.

20. Powerpoint Templates Page 20
INTERNATIONAL COLLABORATION
UNDERTAKEN BY BANK INDONESIA
Bank Indonesia’s membership of several international
institutions and forums include:
1. The South East Asian Central Banks Research and
Training Centre (SEACEN Centre)
2. The South East Asian, New Zealand and Australia
Forum of Banking Supervision (SEANZA)
3. The Executive’ Meeting of East Asian and Pacific
Central Banks (EMEAP)
4. ASEAN Central Bank Forum (ACBF)
5. Bank for International Settlements (BIS)

21. Powerpoint Templates Page 21
INTERNATIONAL COLLABORATION
UNDERTAKEN BY BANK INDONESIA
Memberships of Bank Indonesia as a representative of the
Indonesian Government include:
1. Association of South East Asian Nations (ASEAN)
2. ASEAN+3 (ASEAN + China, Japan and Korea)
3. Asia Pacific Economic Cooperation (APEC)
4. Manila Framework Group (MFG)
5. Asia-Europe Meeting (ASEM)
6. Islamic Development Bank (IDB)
7. International Monetary Fund (IMF)

22. Powerpoint Templates Page 22
INTERNATIONAL COLLABORATION
UNDERTAKEN BY BANK INDONESIA
8. World Bank, including membership of International
Bank of Reconstruction and Development (IBRD),
International Development Association (IDA) and
International Finance Cooperation (IFC), as well as
Multilateral Investment Guarantee Agency (MIGA)
9. World trade Organization (WTO)
10. Intergovernmental Group of 20 (G20)
11. Intergovernmental Group of 15 (G15, as an observer)
12. Intergovernmental Group of 24 (G24, as an observer)

23. Powerpoint Templates Page 23
THANK YOU