Background​​​

Achieving Bank Indonesia's vision to become the foremost digital central bank that creates a tangible contribution to the national economy and the best amongst emerging market countries towards an Advanced Indonesia is supported by comprehensive organisational transformation in response to the various challenges moving forward that could impact the vision and missions. At least five global challenges have emerged as a corollary of the pandemic that demand vigilance, along with two institution challenges that could potentially impede Bank Indonesia's vision and missions. In response, Bank Indonesia has undertaken a holistic transformation institutionally and on the policy side.

Bank Indonesia transformation is implemented referring to the strategic direction set as a guideline to attain the medium-long-term goals. Policy transformation is achieved by strengthening the policy mix to discharge the mandate of rupiah stability (inflation and exchange rates), while safeguarding financial system stability and fostering sustainable economic growth as well as bolstering monetary, macroprudential, payment system and supporting policies. Institutional transformation aims to enhance excellence based on effective, efficient and governed (2EG) performance towards credible implementation of the mandate.

Figure 1. Bank Indonesia Transformation

Institutional transformation of Bank Indonesia involves strengthening the organisation and business processes, human resources and work culture as well as digitalisation. In 2021, Bank Indonesia developed an institutional policy mix framework based on effective, efficient and governed performance (2EG) to strengthen institutional management.