Bank of Indonesia
The Bank of Indonesia
, with its headquarters located in Jakarta, Indonesia, is the central bank
of the country and the issuer of Indonesia’s legal tender currency, the Indonesian Rupiah. The bank is theoretically independent of the government and operates the typical central bank like structure, making it comparable to the many other central banks of the world.
First established in 1953 after the nationalization of Dutch bank De Javasche Bank, the Bank of Indonesia would operate for 15 years in commercial and national banking activities. However in 1968 with new laws and legislations past, the bank became independent of the Indonesian government allowing the country’s banking and financial needs to be met unbiased.
Today the bank is organized with an overall governor at the top of a board of governors, each of whom serve a 5 year term with the option of re-election. The People's Representative Council decides who the governor will be with the “puppet” nomination and approval of the president, who cannot deny a candidate unless special circumstances, such as a criminal offence should arise.
The Bank of Indonesia has many responsibilities and objectives comparable to other central banks. These include but are not limited to the maintaining of the general stability of money and prices, to make sure the bank itself remains financial stable and sustainable, to continually increase and reassess the effectiveness of monetary management, to maintain an efficient banking system for the country’s citizens, to issue legal tender currency
and to oversee payment systems.
As of 2008 Boediono is the governor of the Bank of Indonesia.
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