In practice, the principles of accountability and transparency are consistently applied by communicating policy information to Bank Indonesia's stakeholders. Bank Indonesia implements a two-way horizontally proactive omni-channel communication approach to disseminate policy information early and in a planned manner through various communication instruments.
Bank Indonesia’s communication tools are geared towards achieving Bank Indonesia's goals. Therefore, Bank Indonesia focuses its communication strategy on policy products that are aligned with public expectations and requirements. Such policy communication is expected to help form rational public expectations that are consistent with Bank Indonesia’s policy direction.
Conventional media, such as newspapers, television and radio, are used to communicate policy along with the official website, digital media and social media channels as well as various off-line activation activities with the stakeholders. In addition to those channels, Bank Indonesia constantly strengthens its communication efforts with the People’s Representative Council (DPR), Government and other state institutions in order to synergise inter-institutional communication.
Bank Indonesia also regularly issues various publications, including the Report on the Implementation of Duties and Responsibilities, Annual Report, Monthly Indonesia Financial and Economic Statistics, Monthly Monetary Policy Review, Quarterly Economic and Monetary Report, Quarterly Monetary Policy Developments Report as well as other reports, to ensure the stakeholders obtain an in-depth and comprehensive understanding of Bank Indonesia’s duties and policies.
Further details concerning Public Information Services can be accessed through the Public Information Services and Published Reports menu.
Relationship with Other Institutions
In terms of state administration in the Republic of Indonesia, Bank Indonesia's unique position as an independent state institution is not equivalent to other state apparatus, such as the People’s Representative Council (DPR), Audit Board of the Republic of Indonesia or Supreme Court (MA). Furthermore, Bank Indonesia's position, which is outside the purview of government, is also different to government departments. Although Bank Indonesia is an independent state institution, in practice, Bank Indonesia maintains working relationships and close coordination with the People’s Representative Council (DPR), Audit Board of the Republic of Indonesia, Government and various other relevant parties.
In terms of the President and People’s Representative Council, at the beginning of each fiscal year, Bank Indonesia submits written information concerning an evaluation of monetary policy implementation and the monetary policy plan moving forward. Furthermore, Bank Indonesia must report on the implementation of its duties and responsibilities on a quarterly basis or as requested by the People’s Representative Council. In addition, Bank Indonesia also submits its annual budget plan and realisation to the Government and People’s Representative Council. To the Audit Board of the Republic of Indonesia, Bank Indonesia is required to submit its annual financial statements.
Further information is available by visiting Supervision of Bank Indonesia.
Relationship with the Government
Financial Relationship
Regarding the financial relationship with the Government, Bank Indonesia issues and places government debt securities in order to fund the State Revenue and Expenditure Budget (APBN) but is proscribed from purchasing government debt issuances itself. Bank Indonesia is also the government treasury, administrating the government account at Bank Indonesia upon government request, while receiving foreign loans for and on behalf of the Indonesian Government.
Notwithstanding, to maintain focused task implementation and avoid eroding monetary control effectiveness, Bank Indonesia is no longer permitted to disburse loans to the Government in order to overcome deficit spending in accordance with prevailing regulations.
Independence in Interdependence
Although Bank Indonesia is an independent state institution, consultative coordination with the Government is still necessary because Bank Indonesia's duties form an integral part of overall national economic policy. Coordination between Bank Indonesia and the Government is required in cabinet meetings to discuss economic, banking and financial issues in relation to Bank Indonesia's duties, where the Government may request Bank Indonesia's perspective.
In addition, Bank Indonesia also provides recommendations, opinions and considerations to the Government in terms of the draft state budget and other policies relating to the central bank’s duties and responsibilities. On the other hand, the Government may attend the Bank Indonesia Board of Governors meeting to express an opinion yet without voting rights. Therefore, central bank independence is strongly influenced by a consistent and proportional working relationship between Bank Indonesia on one side and the Government and other relevant institutions on the other, based on a clear delineation of respective duties and responsibilities.
Cooperation with Other Institutions
Realising the importance of various party support as a key to success, Bank Indonesia regularly cooperates and coordinates with state institutions and other public elements. Such cooperation is stipulated within memorandums of understanding (MoU), joint decisions/decrees as well as other agreements and arrangements that aim to create synergy and explicitly delineate duties amongst institutions, while ensuring effective legal enforcement.
KAKBI
Bank Indonesia applies KAKBI as the accounting standards for the preparation and presentation of financial statements in accordance with Bank Indonesia Board of Governors Regulations. KAKBI comprises the Fundamental Principles for the Preparation and Presentation of Financial Statements (PDP2LK) as well as the Statement of Financial Accounting Policy (PKAK).
The process of preparing accounting standards for Bank Indonesia was initiated in 2008 with discussion forums involving practitioners and academics to discuss the uniqueness of Bank Indonesia as well as accounting standards that could be used as a reference. From the various discussions and studies, it was concluded that Bank Indonesia cannot apply general accounting standards fully due to the unique objectives performed by Bank Indonesia, thus requiring accounting standards appropriate to the specific characteristics of Bank Indonesia. Read more
