Indonesia Monetary Policy

Indonesia monetary policy

1. How does the Central Bank operate in your country? Who is at the top? What are his opinions? How independent is the CB? How does the CB intervene? Does the CB intervene? What are its objectives? How credible is the CB? Etc.

2. Current situation of the financial system of your country.

STATUS AND POSITION OF BANK INDONESIA

As an Independent State Institution

For the next 15 years, the Bank of Indonesia carried on commercial activities as well as acting as the nation’s bank.

This came to an end with the Law No.13/1968 on the Central Bank, which was subsequently replaced by Law No.23/1999, giving the bank independence.

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. Such unique status and position are necessary so that Bank Indonesia can implement its role and function as monetary authority more effectively and efficiently.

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.

THE BOARD OF GOVERNORS

In implementing its duties and responsibilities, Bank Indonesia is managed by the Board of Governors. 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...