Central Bank Of Indonesia: The Development Of The Status And Position Of Bank Indonesia

Abstract

The country's journey is closely linked to the long and complicated history of Bank Indonesia (BI), the Central Bank of Indonesia. Bank Indonesia plays an important role in maintaining stability and promoting economic growth in Indonesia. We can better understand Bank Indonesia's involvement in improving the welfare of Indonesians and building economic resilience if we know its background, responsibilities and roles. This research uses a qualitative methodology with an emphasis on literature review. The approach used is literature analysis, which involves gathering information from various sources, including books and journals, that discuss the purpose and key responsibilities of Bank Indonesia, the evolution of its status and position, and the interaction between Bank Indonesia and International Financial Institutions and the Government. From the above, it is clear that Bank Indonesia as an autonomous and independent state institution, has full authority to decide how to fulfill each of its responsibilities and authorities in accordance with applicable laws. It is forbidden for third parties to interfere with Bank Indonesia's ability to fulfill its responsibilities, and Bank Indonesia must decline or reject such involvement. The law grants Bank Indonesia a special status in order to strengthen its independence. In addition, Bank Indonesia is responsible for supervising banks doing business in Indonesia. The purpose of this supervision, which is conducted by Bank Indonesia on behalf of the Monetary Board, is to regulate the liquidity and financial stability of each bank operating in Indonesia.