Page 3 - ECONOMIC LEARNING MEDIA AND ITC

a) Determination and Implementation of Monetary Policy: Bank Indonesia is responsible for
establishing and implementing monetary policy aimed at achieving stability in the value
of the rupiah and controlling inflation.
b) Payment System Regulation: Bank Indonesia is tasked with supervising and regulating
the national payment system, including the clearing system and interbank transfers.
c) Regulation and Supervision of Financial Institutions: Bank Indonesia has the authority to
regulate and supervise financial institutions in Indonesia, including commercial banks,
insurance companies and other non-bank financial institutions.
d) Foreign Exchange Reserve Management: Bank Indonesia is responsible for managing the
country's foreign exchange reserves in order to support the stability of the rupiah
exchange rate.
e) Money and Currency Management: Bank Indonesia has the authority to issue and
circulate banknotes and coins in Indonesia.
4. Bank Indonesia 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.
5. Authority of Bank Indonesia
a) Determining Interest Rates: Bank Indonesia has the authority to determine policy interest
rates, which will influence interest rates on the financial market.
b) Foreign Exchange Intervention: Bank Indonesia can intervene in the foreign exchange
market to influence the rupiah exchange rate.
c) Setting Mandatory Reserve Requirements: Bank Indonesia can determine mandatory
reserve requirements that must be met by commercial banks.
d) 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.