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Function of Bank Indonesia

Explaining the function of Bank Indonesia

WahonoDiphayana
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Function of Bank Indonesia

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  1. BANK INDONESIA FUNCTION Wahono Diphayana Powerpoint Templates Powerpoint Templates Page 1

  2. BANK INDONESIA VISION To be a credible institution and the best central bank in the region by strengthening the strategic values held as well as through the achievement of low inflation along with a stable exchange rate. Powerpoint Templates Page 2

  3. BANK INDONESIA MISSION 1. To achieve rupiah exchange rate stability and maintain the efficacy of monetary policy transmission in order to drive quality economic growth. To nurture an effective and efficient national financial system that can withstand internal and external shocks in order to support the allocation of funding/financing that contributes economic stability and growth 2. to national Powerpoint Templates Page 3

  4. BANK INDONESIA MISSION 3. To ensure a secure, efficient and smooth payment system that contributes to the domestic economy and helps maintain monetary as well as financial system stability whilst broadening access in the national interest. 4. To build and maintain the organisation and human resources of Bank Indonesia, who are performance based and honour integrity, as well as to enforce good corporate governance in the implementation of tasks as mandated in prevailing laws. Powerpoint Templates Page 4

  5. BANK INDONESIA STRATEGIC OBJECTIVES To realize its Mission, Vision and Strategic Values, Bank Indonesia has stipulated the following medium-long term strategic objectives : 1. Strengthen inflation control in terms of demand and supply 2. Maintain exchange rate stability 3. Foster deep and efficient financial markets 4. Maintain financial system stability, underpinned by solid payment system surveillance 5. Realise directed, efficient and synergetic financial inclusion Powerpoint Templates Page 5

  6. BANK INDONESIA STRATEGIC OBJECTIVES 6. Maintain a payment system that is secure, efficient and free from disruption 7. Strengthen accountable financial management at Bank Indonesia 8. Realise an effective and efficient work process supported by Information Systems, culture and governance 9. Expedite the availability of competent human resources 10. Build and strengthen strategic alliances and enhance the public perception of BI 11. Ensure a smooth transition of the supervisory function to the Financial Services Authority (OJK) Powerpoint Templates Page 6

  7. OBJECTIVES AND TASKS OF BANK INDONESIA Single Objective In its capacity as central bank, Bank Indonesia has one single objective of achieving and maintaining stability of the Rupiah value. The stability of the value of the Rupiah comprises two aspects, one is stability of Rupiah value against goods and services and the other is the stability of the exchange rate of the Rupiah against other currencies. Powerpoint Templates Page 7

  8. OBJECTIVES AND TASKS OF BANK INDONESIA Single Objective The first aspect is as reflected by the rate of inflation and the second aspect is as reflected by the development of Rupiah exchange rate against other currencies. The prescribed single objective is intended to establish a target that is clear and to be achieved by Bank Indonesia within its limits and responsibilities. Thus way, the achievement of the objective of Bank Indonesia will be easily measurable. Powerpoint Templates Page 8

  9. OBJECTIVES AND TASKS OF BANK INDONESIA The Three Main Pillars In the pursuit of the objective, Bank Indonesia is supported by three pillars, representing its three sectors of task. These three sectors (see image below) have to be integrated to ensure that the objective of achieving and maintaining a stable value of Rupiah can be achieved effectively and efficiently Powerpoint Templates Page 9

  10. The Three Main Pillars In the pursuit of the objective, Bank Indonesia is supported by three pillars, representing its three sectors of task. These three sectors (see image below) have to be integrated to ensure that the objective of achieving and maintaining a stable value of Rupiah can be achieved effectively and efficiently OBJECTIVES AND TASKS OF BANK INDONESIA The Three Main Pillars Powerpoint Templates Page 10

  11. BANK INDONESIA ACCOUNTABILITY The new Bank Indonesia Act demands that Bank Indonesia must always adhere to the principles of accountability and transparency in implementing its duties, authorities and budget. The accountability and transparency demanded from Bank Indonesia are intended to increase all stakeholders' participation in overseeing every policy taken by the Bank. Powerpoint Templates Page 11

  12. BANK INDONESIA ACCOUNTABILITY From the aspect of implementing duties and authority, accountability and transparency are applied in the form of open information pertaining the evaluation of monetary policy implemented in the previous year, and monetary policy plan and monetary target for the next year, to public via mass media at the commencement of each year. Such information is also reported directly to the President and The House of Representatives - DPR. Powerpoint Templates Page 12

  13. BANK INDONESIA ACCOUNTABILITY Under the supervisory function of The House of Representatives, Bank Indonesia is required by law to submit a quarterly -- or as per request -- progress report on implementation of its duties and responsibilities. Powerpoint Templates Page 13

  14. BANK INDONESIA ACCOUNTABILITY For transparency in budgeting, Bank Indonesia is required to submit its annual budget to The House of Representatives. In addition, Bank Indonesia Annual Report is submitted to State Auditors (BPK) for auditing and the result is announced to the public through mass media. Bank Indonesia is also obliged to prepare a weekly balance sheet for publication in the State Gazette (Berita Negara Republik Indonesia). Powerpoint Templates Page 14

  15. BANK INDONESIA ACCOUNTABILITY As further steps toward transparency, Bank Indonesia periodically publishes various publications such as the Weekly Report (Laporan Mingguan), Monthly Indonesian Financial and Economic Statistics, Monthly Review of Monetary Policy, Quarterly Monetary and Economic Progress, Quarterly Report on Monetary Policy Progress, and Annual Report. Bank Indonesia's homepage (http://www.bi.go.id) is accessible for members of the public who wish to obtain data and information from the Bank. Powerpoint Templates Page 15

  16. Thank You Powerpoint Templates Page 16

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