Page 6 - Material about Central bank

Bank Central Duties

a. Controlling Inflation: One of Bank Indonesia's main tasks is to maintain price stability,
with a focus on controlling the inflation rate.

b. Maintain Financial System Stability: Bank Indonesia must ensure the stability and health
of the financial system in Indonesia, including banking and other financial institutions.
c. Maintaining the Stability of the Rupiah Exchange Rate
Bank Indonesia must strive to maintain the stability of the rupiah exchange rate against
foreign currencies.
d. Maintaining the Security and Smoothness of the Payment System: Bank Indonesia
must ensure that the payment system in Indonesia runs safely and smoothly.

e. Determining Interest Rates: Bank Indonesia has the authority to determine policy
interest rates, which will influence interest rates on the financial market.

Authority Of Central Bank

a) Foreign Exchange Intervention: Bank Indonesia can intervene in the foreign
exchange market to influence the rupiah exchange rate.
b) Setting Mandatory Reserve Requirements: Bank Indonesia can determine mandatory
reserve requirements that must be met by commercial banks.
c) Regulation and Supervision of Financial Institutions: Bank Indonesia has the authority to
issue regulations and supervise financial institutions in Indonesia.

By playing the role of central bank, Bank Indonesia has a big responsibility in ensuring
economic and financial stability in Indonesia. It includes money management, monetary policy,
and supervision of financial institutions to achieve desired economic goals.

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