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B. THE ROLE OF INDONESIAN BANKS IN THE PAYMENT SYSTEM

Bank Indonesia's role as a supervisory institution. This role aims to ensure that payment
transactions made by the public can run safely and avoid fraud or other crimes. One of them is as
a regulator that ensures that every procedure and payment system runs well as it should.

1. Position of Bank Indonesian
Bank Indonesia was established on July 1, 1953 with Law No. 23 Year 1999 on Bank Indonesia.
In this law, the area of microprudential regulation and supervision of financial institutions was
handed over to OJK. While the responsibility for macroprudential regulation and supervision is
given to Bank Indonesia with the aim of maintaining financial system stability. As the central
bank, Bank Indonesia has a position as an independent institution that does not depend on the
interests of the government or other parties.

2. Status of Bank Indonesia
Bank Indonesia has the status as the central bank and sole authority in Indonesia's monetary
system. As an independent institution, Bank Indonesia also has no connection with political or
business interests.

3. Objectives of Bank Indonesia
Bank Indonesia's main objective is to maintain the stability of the rupiah and market prices, and
to strengthen the financial system and national economy. Bank Indonesia is also responsible for
keeping the inflation rate in Indonesia within a government-determined range.

4. Duties of Bank Indonesia
As the central bank, Bank Indonesia has the task of carrying out monetary policy, such as
regulating the payment system. In addition to carrying out its duties as the central bank, Bank
Indonesia is also responsible for controlling banking activities in Indonesia. This is done so that
banks can operate properly and not harm customers or cause instability in the national financial
system. As an independent central bank, Bank Indonesia also has an open and transparent policy
in carrying out its duties. This is done so that the public can understand the policies taken by
Bank Indonesia and gain confidence that these regulations are nothing but aimed at the national
interest. In carrying out its duties, Bank Indonesia also cooperates with other institutions both at
home and abroad, such as international financial institutions, central banks from various
countries, and other related parties.

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