BI is a common term and almost all Indonesian know it. It stands for Bank Indonesia. Actually, there is another name of the bank. It is called De Javasche Bank. However, it was used only during the reign of the Dutch. As a central bank of Indonesia, it has only one role. It is to achieve and retain the currency stability of the country. In order to achieve such goal, the bank has developed three prime pillars. First, it is to create a monetary policy. Second, it is to maintain the banking system of the nation. Another important role is to monitor Indonesia’s banking activity.
Basic Things about Bank Indonesia
The three pillars of BI should be done equally. This way, Indonesian Currency or Rupiah is able to retain its stability. Thus, the nation won’t undergo any finance crisis. Also, the bank has an important role in monitoring Indonesian banking system. Here is the thing. BI is the only bank in Indonesia, which is able to distribute the money. The leader is the same as other banks, which is Directors. What makes it interesting for tourists? Well, many tourists come to Indonesia and visit the bank. They want to learn directly regarding the history of such majestic finance institution.
According to history, Bank Indonesia was formed in 1828. At that time, the name was De Javasche. The founder was the Dutch East Indies government. They created the banks as the central of money circulation. Due to the independence of Indonesia, the name changed into BI. It happened in 1953. There are three main roles of the bank. It is to take care of Indonesian monetary, payment, and banking system. Still, it also takes care of the previous roles of DJB.
Indonesia chose BI as the central bank of the nation. It was legalized in 1968. That means this one has no related jobs to commercial banks. The government uses it primarily to improve citizens’ prosperity and improving country’s wealth. There have been many new laws related to the roles of this central bank, actually. One of them is to prevent a global financial crisis. There are many different programs in order to avoid such thing. The bank also helps several core industries to develop over time.
Bank Indonesia is an Important Entity of the Nation
Today, BI also has an important role as a legal entity. It covers both civil and public laws. Retaining the stability of Indonesian Currency is not an easy task. Due to this reason, it has the right to eradicate unlicensed or violating corporations. It can even give several sanctions to those companies based on the applicable laws. Isn’t that great?
Even though Bank Indonesia is not as popular as commercial banks, it holds an important role. In fact, the country depends on this institution much. The purpose is to stabilize the economy. Hopefully, it becomes a nation’s finance pillar. This way, any corporations and businesses are able to grow without worrying any inflation or other nation’s finance issues. For tourists, the bank also becomes an interesting object of study.