Part 1 : History of Bank Indonesia Institution - Bank Sentral Republik Indonesia
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November 24, 2020

The history of Bank Indonesia’s institution began from the enactment of the central bank Act No.11 of 1953 concerning Principal Act on Bank Indonesia dated 1 July 1953. In carrying out its duties as the central bank, Bank Indonesia was managed by the Monetary Board, Board of Directors and Board of Advisors. The Monetary Board issued monetary policies, although the Government was accountable for it. After it had been amalgamated into a single bank, during the early period of the New Order, the underlying act of Bank Indonesia was amended through Act No. 13 of 1968 concerning the Central Bank. From that time, Bank Indonesia played the role as the Central Bank and simultaneously assisted the government in the development programs by implementing the government policies with the help from the Monetary Board. As a result, Bank Indonesia was no longer under the Monetary Board. With the end of the New Order, Bank Indonesia ultimately became independent through Act No. 23 of 1999 concerning Bank Indonesia which was then amended with Act No. 3 of 2004. From this time on, Bank Indonesia enjoys a special position in the state structure, namely an independent state institution and free from government intervention and or other parties. However, in implementing sustainable, consistent and transparent monetary policies, Bank Indonesia must take into account the government’s policies in general on economy.



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