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| Posted: 11 Jan 2012 07:47 AM PST
 Bank Indonesia (BI, used to be called De Javasche Bank) is the central bank of the Republic of Indonesia. As the central bank, BI has one single goal of achieving and maintaining stability of the rupiah. Stability of exchange rate contains two aspects, namely the stability of the currency's value against goods and services, as well as stability against other currencies.To achieve that goal of BI is supported by three pillars which are the three areas of its work. These three areas of this task is to formulate and implement monetary policy, regulate and maintain the smooth operation of payment systems, and regulate and supervise banks in Indonesia. All three need to be integrated so that the goal of achieving and maintaining stability in the rupiah can be achieved effectively and efficiently. BI also became the only institution that has the right to distribute the money in Indonesia. In carrying out its duties and authorities headed by the Board of Governors of BI. For the period 2008-2013, Nasution held positions as BI Governor Boediono replaces the Vice President. In 1828 De Javasche Bank was established by the Government of the Netherlands East Indies as a circulation bank in charge of printing and distributing the money. In 1953, the Act set a founding Principal of Bank Indonesia to replace De Javasche Bank functions as the central bank, with three major tasks in the field of monetary, banking and payment systems. In addition, BI was given another important assignment in conjunction with the Government and the continued commercial bank functions previously performed by the DJB. In 1968 published the Central Bank Act which regulates the status and tasks of Bank Indonesia as the central bank, apart from other banks that perform commercial functions. Besides the three main tasks of the central bank, Bank Indonesia is also assigned to assist the Government as agents of development encourages the smooth production and development and expanding employment opportunities in order to improve the standard of living. In 1999 a new chapter in the history of Bank Indonesia, in accordance with Law No.23/1999 which Bank Indonesia set a single goal of achieving and maintaining stability of the rupiah. In 2004, Bank Indonesia Act was amended to focus on important aspects related to the implementation of the duties and authority of Bank Indonesia, including the strengthening of governance. In 2008, the Government issued Government Regulation in Lieu of Law No.2 of 2008 on the Second Amendment Act No.23 of 1999 concerning BI as part of efforts to maintain financial system stability. The amendment is intended to enhance the resilience of national banking in the face of global crisis through improved access to banking to the Short-Term Financing Facility from Bank Indonesia.  |
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