As a central bank, BI has responsibility to achieve and maintain rupiah stability by maintaining monetary stability and by promoting financial system stability for Indonesia’s long term sustainable development. BI also became the only institution that has the right to distribute rupiah in Indonesia. BI is managed by Board of Governors. The Board is led by a Governor who is assisted by a Senior Deputy Governor as the Vice-Governor, and at least four and not more than seven Deputy Governors. The Members of the Board of Governors shall be appointed for a term of office of 5 (five) years and may be reappointed to the same position for no more than 1 (one) subsequent term of office.
Bank Indonesia's Governor
Darmin Nasution - until May 2013
Darmin Nasution (born in Tapanuli, North Sumatra on 21 December 1948) is an Indonesian technocrat. He received his doctorate in economics from University of Paris, Sorbonne, France (1986), where he also completed his masters, following a bachelor at the Faculty of Economics at the University of Indonesia. Prior to his appointment as the Governor of Bank Indonesia he had a lengthy career spanning a number of state institutions.
In 2009 Darmin Nasution was appointed as Acting Governor of Bank Indonesia, following the resignation of Boediono in May 2009 to join President Yudhoyono as a running mate, and later Vice President, in the 2009 presidential election. In July 2010 the State Legislature approved his appointment as Governor, and in September 2010 he took the oath as the Governor of Bank Indonesia.
Prior to his appointment, Darmin Nasution served as the Director General of Tax at the Ministry of Finance (2006-2009). While, earlier in his career, he held the positions of Managing Director-FEUI LPEM, Assistant Minister for Industry and Trade Coordinator, Assistant Minister for Production and Distribution Coordinator, Assistant to Coordinating Minister for Development Supervision and Administrative Reform, Director General of the Financial Institutions (2000-2005) and Chairman of Indonesia’s Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) (2005-2006).
Darmin Nasution has stated that one of his goals is to increase access to credit, and to reduce the lending rates offered by Indonesian banks. His vision and mission consists of making Bank Indonesia more credible in the eyes of the public, by means of carrying out a restructuring programme that would ensure that regulations are well suited to supporting economic growth, optimizing the operations of the Bank, introducing a merit and performance based work-culture, and increasing transparency.
Under Darmin Nasution’s Governorship, Bank Indonesia is currently working on creating a centralized credit bureau system, which would assign a unique Financial Identity Number to each individual for the purpose of keeping track of people’s credit histories. In addition to this, a banking education programme has been launched in order to educate people about financial management and assist the less well off members of society with opening savings bank accounts. Furthermore, Darmin Nasution’s term has seen increased supervision and oversight of the banking sector, a trend that appears likely to continue.
Shortly after his appointment Darmin Nasution was elected as Chairman of the Indonesian Economist Association (ISEI) for the 2009-2012 period at the 17th Congress which took place in Bukittinggi, West Sumatra.
Agus Dermawan Wintarto Martowardojo - from May 2013
Agus Dermawan Wintarto Martowardojo (born in Amsterdam, The Netherlands, January 24 1956) is an Indonesian banker. He is a graduate of the Faculty of Economics, University of Indonesia (1984), who, prior to his appointment as the Governor of Bank Indonesia, served as the Minister of Finance, and had a lengthy career with a number of foreign and Indonesian banks.
As Minister of Finance he was apointed, along with his deputy, Anny Ratnawati, by President Susilo Bambang Yudhoyono. He suceeded Sri Mulyani, who resigned her post to take up a position as a Managing Director of the World Bank in Washington.
Prior to the appointment, Agus Martowardojo served as the CEO of state owed Bank Mandiri, the largest bank in Indonesia, starting from 2005. While, earlier in his career, he has held positions with Bank of America (International Loan Officer at the Jakarta Branch, 1984), Bank Niaga (Vice President, 1986-1994), Bank Bumiputera (President Director, 1995-1998), Exim Bank (Managing Director, 1998) and the Indonesian Bank Restructuring Agency (2002). As well as holding the position of Director at Bank Permata for a period of three years.
In 2008 Agus Martowardojo was the President’s choice for Governor of Bank Indonesia, but was rejected by the House of Representatives.
As Minister of Finance Agus Martowardojo had stated that he would pursue a reform agenda, as previously spearheaded by Sri Mulyani. More specifically he aimed to increase tax receipts by registering more taxpayers and creating a business climate that facilitated increased tax revenues.
Agus Martowardojo is well known by the international community and by investors, with his extensive experience as a banker providing in-depth knowledge on the problems faced by the Indonesian banking sector. While the progress made at Bank Mandiri during his tenure in cutting non-performing loans, raising the bank's profile among international investors, as well as producing strong profits and a strong share price performance, are a testament to his strong managerial skills.
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