Status and position of Bank Indonesia

Bank Indonesia

BY: Farisca Eka Rosalina HBS A 11220016

Status and position of Bank Indonesia.

As an Independent State Institutions. New chapter in the history of Bank Indonesia as an independent central bank that begins when a new law , UU 23/1999 about  Bank Indonesia , declared effective on May 17, 1999. This law gives the status and position as an independent state agency and free from government interference or other parties .

As an independent state institution , Bank Indonesia has full autonomy in formulating and carrying out any duties and responsibilities as specified in UU . Outsiders do not interfere with the performance of duties is justified by Bank Indonesia and Bank Indonesia are also obliged to reject or ignore any intervention from any party . To further ensure the independence , this law has given special status to Bank Indonesia in the constitutional structure of the Republic of Indonesia . As an independent state institution notch Bank Indonesia does not align with state executive bodies . In addition , the position of Bank Indonesia is also not the same as the Department , because the position of Bank Indonesia is out of the Government . Status and the special position of Bank Indonesia is needed in order to carry out its role and function as a monetary authority more effectively and efficiently.

As a Legal Entity.

 Bank Indonesia's status as a legal entity either public or private legal entities established by law . As a public entity Bank Indonesia has set the rules of law which is the implementation of the laws that bind the entire public in accordance with the duties and responsibilities. As a civil legal entity , Bank Indonesia may act for and on behalf of themselves inside and outside the court .

Goals and Tasks of Bank Indonesia

In its capacity as a central bank , Bank Indonesia has one single purpose , namely to achieve and maintain rupiah stability . Stability of exchange rate contains two aspects , namely the stability of the currency for goods and services , as well as the stability of the currency of another country . The first aspect is reflected in the development of the inflation rate , while the second aspect is reflected in the rupiah exchange rate against other currencies . This formulation is intended for the sole purpose of clarifying objectives to be achieved by Bank Indonesia as well as the limits of their responsibilities . Thus , whether or not the goal is achieved the Bank Indonesia will eventually be measured easily .

Three Main Pillars

To achieve the goal of Bank Indonesia is supported by three pillars which are the three areas of its work.

The third field of this task is :

• Establish and implement monetary policy .

• Set up and maintain smooth operation of payment systems , and

• Organize and supervise banks in Indonesia.