Part 3 : DJB Pursuant to 1st until 8th Octrooi - Bank Sentral Republik Indonesia
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November 14, 2018

The idea for the establishment of a circulation bank for Dutch Indies was coined prior to the departure of the General Commissioner of Dutch Indies, namely Mr. C.T. Elout to Dutch Indies. The financial condition in Dutch Indies was considered in need of orderliness and payment system regulation through a bank institution. Simultaneously the business people in Batavia, Dutch Indies had spurred the urgency for the establishment of a bank institution to fulfill their business requirements. However, the idea was materialized only when King Willem the first issued a Power of Attorney to the General Commissioner of Dutch Indies on 9 December 1826. This letter authorized the Dutch Indies Administration to set up a bank pursuant to the special authority with a definite period or commonly known as the Exclusive Rights (Octrooi)

With such power, the Dutch Indies Administration began to prepare for the establishment of DJB. On 11 December 1827, the General Commissioner of Dutch Indies, Leonard Pierre Joseph Burggraaf Du Bus de Gisignies issued Decree No. 28 regarding the Exclusive Rights and the provisions regarding DJB. Subsequently, on 24 January 1828 through the Decree of the General Commissioner of Dutch Indies No. 25, the Deed of Incorporation of De Javasche Bank (DJB) was stipulated. Simultaneously, Mr. C de Haan was appointed President DJB and C.J. Smulders Secretary of DJB.

The exclusive right served as the provision and guideline for the operation of DJB. The first DJB’s exclusive right was valid for 10 years from 1 January 1828 until 31 December 1837 and was then extended until 31 March 1838. During the sixth exclusive, DJB renewed its deed of incorporation before Notary Derk Bodde in Jakarta on 22 March 1881. Pursuant to this new deed, bank’s status was changed to Naamlooze Vennootschap (N.V.). With such deed revision, DJB was treated as a new company. The eighth exclusive was the DJB’s last exclusive until the enactment of DJB Bank Act in 1922. Within such exclusive period, DJB issued new provisions in the payment system aimed at improving the payment traffic in the Dutch Indies. This eighth exclusive expired on 31 March 1921 and was expanded for another year up to 31 March 1922.

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