What Is The Task Of The Governor Of BI Like?

Duties of the Governor of BI - Illustration. (Photo: Doc. Antara)

Bank Indonesia (BI) is a central bank that aims to travel and maintain the stability of rupiah exchange points. Check out the functions and duties of the governor of BI.

In the Financial Sector Development and Strengthening Law (PPSK) which was just inaugurated by the Indonesian House of Representatives at the end of 2022, BI's goal in addition to achieving rupiah stability is also to maintain the stability of payment methods, as well as financial methods in order to support sustainable economic growth. According to the regulation}, BI has three tasks.

In determining monetary policy, BI has the authority to manage interest rates, exchange points, liquidity, foreign exchange traffic, state foreign exchange reserves, also control, supervise, and optimize the foreign exchange market, as well as determine and implement other monetary policies.

Then, BI determines and carries out macroprudential policies to maintain the stability of financial methods, including through efforts to support balanced, quality, and sustainable intermediation, mitigate and manage systemic risks, as well as increase economic inclusion, financial inclusion, and sustainable finance.

In carrying out these duties and authorities, BI is led by the Board of Governors. According to Law no. 23/1999, the Board of Governors is led by the Governor and Deputy Senior Governors as representatives.

The Board of Governors also consists of a minimum of four or a maximum of seven Deputy Governors.

The current BI governor is held by Perry Warjiyo according to the Decree of the President of the Republic of Indonesia No. 70/P of 2018 dated April 16, 2018.

Perry stated the oath of office on May 24, 2018. In the PPSK Law, it is also explained that members of the Board of Governors are appointed for a term of 5 years and can be reappointed in the same office no later than once.

This regulation also reiterated that BI is an independent state institution in carrying out its duties and authorities, free from government interference and/or other parties, in addition to certain matters that are controlled in the PPSK Law.

Who is monitoring BI?

Supervision of Bank Indonesia in terms of finance is carried out in the form of an examination of the Bank Indonesia Annual Financial Statements (LKTBI) by the Supreme Audit Agency (BPK-RI).

In carrying out his duties BI is led by the Governor and assisted by anyone?

In carrying out its duties and authorities Bank Indonesia is led by the Board of Governors. This council consists of a governor as a leader, assisted by a Senior Deputy Governor as a representative, and at least four or a maximum of seven Deputy Governors.

Is BI part of the government?

BI's position is also not the same as the Department because BI's position is outside the government. Although BI is domiciled as an independent state institution, in carrying out its duties, BI has good work relations and coordination with the DPR, BPK, Government, and other parties.

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