BI Institutional Report 2022

The cover of the Bank Indonesia Institutional Report 2022 depicts the Bank Indonesia
Representative Office of Bali Province. As the nascent Bali tourism industry emerged
in the 1970s, which had a positive impact on the local economy, the old building of Bank
Indonesia Representatitve Office of Bali Province was no longer considered fit for
purpose to continue providing services to the community. Therefore, Bank Indonesia
moved to this new building.
Construction of the Bank Indonesia Representative Office building in Bali Province

began on 27th June 1997. Nevertheless, the monetary crisis, which had developed into
a full-blown multidimensional crisis, forced the temporary suspension of construction
activity. Construction of the building resumed in May 2003. Upon completion, the Bank
Indonesia Representative Office of Bali Province was inaugurated by the incumbent
Governor of Bank Indonesia, Burhanuddin Abdullah, on 2nd December 2005.
The Bank Indonesia Representative Office of Bali Province is a blend of modern office
building architecture with tropical nuances enveloped in traditional Balinese elements. As
a representation of the central bank, the building symbolises strength and authority, which
combine seamlessly with the graceful, monumental and enduring aesthetic expression.
The oversized eaves provide generous shade in line with Bank Indonesia’s commitment
to remain present in every sense of Indonesia.
LAPORAN TAHUNAN
BANK INDONESIA
2022
The Bank Indonesia Institutional Report is an institutional performance report to fulfill

transparency and accountability of Bank Indonesia’s obligation specified in Article 58
LTBI merupakan Laporan Kinerja Kelembagaan Bank Indonesia
of Act. No. 23 of 1999 concerning Bank Indonesia as last amended by Act No. 4 of 2023
periode tahunan yang disusun sebagai pemenuhan kewajiban
concerning Development and Strengthening of the Financial Sector.
transparansi dan akuntabilitas Bank Indonesia yang diatur
dalam Pasal 58 UU No.23 tahun 1999 tentang Bank Indonesia
sebagaimana telah beberapa kali diubah terakhir dengan
UU No.4 tahun 2023 tentang Pengembangan
dan Penguatan Sektor Keuangan
Governor’s Executive Economic Outlook Bank Indonesia Bank Indonesia Institutional
Foreword Summary and Challenges Policy Response Transformation
TABLE OF CONTENTS
Governor’s Foreword 4
Executive Summary 10
1. Economic Outlook and Challenges 14
1.1. Global Economy 17

1.2. Domestic Economy 19
1.3. Institutional Facet 20
2. Bank Indonesia Policy Response 22
2.1. Bank Indonesia Policy Stance 25

2.2. Bank Indonesia Policy Response 26
3. Bank Indonesia Institutional Transformation 32
3.1. Policy Transformation 35

3.2. Organization and Business Process Transformation 43
3.3. Human Resource and Work Culture Transformation 45
3.4. Digital Transformation 46
4. Bank Indonesia’s Performance in 2022 48
2 Bank Indonesia Institutional Report 2022

Bank Indonesia Board of
Bank Indonesia’s Bank Indonesia Appendix
Governors and Institutional
Performance in 2022 Supervisory Board
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5. Bank Indonesia Board of Governors and Institutional Arrangement 82
6. Bank Indonesia Supervisory Board 102
Appendix 108
List of Bank Indonesia’s Policies and Regulations 110

Glossary 128
List of Abbreviations 138
List of Pictures
Picture 01. Bank Indonesia Green Institutional Initiative up to 2022 42
List of Tables
Table 01. Statement of Financial Position 99

Table 02. Statement of Surplus Deficit 100
Bank Indonesia Institutional Report 2022

GOVERNOR’S
FOREWORD
Laporan Tahunan Bank Indonesia 2022

4
Laporan Tahunan Bank Indonesia 2022
5
A
lhamdulillah, praise to God Almighty, Allah instruments, namely monetary, macroprudential, and
Subhanahu wa Ta’ala (SWT), for with His payment system policy instruments, supported by money
grace Bank Indonesia has published the Bank market deepening as well as economic and financial
Indonesia Institutional Report 2022. The report inclusion. In 2022, Bank Indonesia prioritised a well-
demonstrates our utmost commitment to strengthening calibrated, well-planned and well-communicated policy
BI accountability and transparency, as mandated in mix response to dynamic economic challenges. To that
Act No. 23 of 1999 concerning Bank Indonesia as last end, Bank Indonesia oriented monetary policy towards
amended by Act No. 4 of 2023 concerning Development maintaining stability (pro-stability), while focusing the
and Strengthening of the Financial Sector (P2SK Act). four other policy elements, namely macroprudential
specifically Article 58. Furthermore, the report also policy, payment system policy, money market deepening
indicates our commitment to be the credible central as well as economic and financial inclusion, on stimulating
bank in terms of effectively and efficiently complying economic growth (pro-growth). The policy direction
with the mandated goals, supported by good and pursued by Bank Indonesia was supported through policy
professional institutional governance in line with synergy and coordination between the Government,
external and internal dynamics through the principles of Bank Indonesia, and the Financial System Stability
independence, consistency, coordination, accountability Committee (KSSK).
and transparency.
Bank Indonesia continued strengthening coordination
After experiencing a multispeed economic recovery in to control inflation with the (central and regional)
2021, the global economy was beset by economic turmoil Government through the Central and Regional
in 2022. Growing geopolitical tensions exacerbated Inflation Control Teams (TPIP and TPID). Coordinated
fragmentation and compounded the economic outlook. efforts to manage inflation based on the demand and
Wider fragmentation has triggered disruptions in global supply sides, that include the National Movement for
supply chains, which pushed up global energy and food Food Inflation Control (GNPIP), with additional fiscal
prices. Such conditions created the risk of stagflation budget support to lower regional inflation through the
and potential recession, while elevating global financial Regional Incentive Fund (DID) and use of Unexpected
market uncertainty. Alhamdulillah, we are grateful that Expenditures (BTT), transportation subsidies using the
despite the global turmoil, the domestic economy still General Transfer Fund (DTU), among others, as well as
performed solidly in 2022. other stabilisation policies to dampen the build-up of
inflationary pressures.
Consistency, Innovation, and Synergy are key to
Indonesia’s economic resilience. An optimal response Bank Indonesia also played an active and pivotal
based on clear rationale and principles (book smart), role in Indonesia’s G20 Presidency throughout 2022,
innovation, creativity, speed, and courage in the policy themed ‘Recover Together, Recover Stronger’. Amid
mix making process (street smart), underpinned by heightened geopolitical tensions, Indonesia advocated
close policy synergy between Bank Indonesia and the strengthening international coordination and
Government to optimise the various policy instruments cooperation to overcome various issues and specifically
at disposal, were key to confronting the complex and prevent a further deterioration of the global economy.
multidimensional issues. Indonesia’s G20 Presidency successfully promulgated
various agreements and recommendations, which will
Consistency, Innovation, and Synergy also represent serve as references and/or considerations for member
the spirit and commitment of Bank Indonesia in terms countries when implementing policies moving forward.
of maintaining stability and supporting the national In conjunction with the Ministry of Finance and other
economic recovery from the impact of the Covid-19 government ministries/agencies through the finance
pandemic and global turmoil. This was achieved by track, Bank Indonesia demonstrated solid leadership in
optimising the full panoply of Bank Indonesia policy terms of strengthening global coordination to mitigate

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near-term global economic risks and strengthen global Policy and institutional transformation underpinned
economic resilience in the medium term. The success of Bank Indonesia’s performance in 2022 beyond all targets,
Indonesia’s G20 Presidency represents important capital as reflected in the realisation of 41 Key Performance
for a successful ASEAN Chairmanship in 2023. Bank Indicators (KPI) across 12 Strategic Programs (SP) as
Indonesia fully supports Indonesia’s successful ASEAN well as the financial performance of Bank Indonesia.
Chairmanship in close synergy with the Government, The successful execution of duties also earned Bank
particularly in the financial integration track. Indonesia national and international recognition and
acclaim. BI excellence is the manifestation of consistent
Bank Indonesia continued its transformation agenda policy implementation, continuous innovation, and close
in the policy and institutional areas as a tangible step policy synergy between Bank Indonesia, the Government
towards building a credible, professional, accountable, and relevant government ministries/agencies.
and transparent central bank based on good governance.
Policy transformation included the development of various In closing, we take this opportunity to extend our utmost
blueprints/frameworks, instruments, and infrastructure appreciation and gratitude to all strategic partners of Bank
to maintain price stability and exchange rate stability, Indonesia, the Government, People’s Representative
while preserving the stability of the financial system and Council (DPR), especially Commission XI, Audit Board
nurturing sustainable economic growth. Institutional of the Republic of Indonesia, Financial System Stability
transformation was oriented towards strengthening the Committee, the banking industry, business community,
organisation and business processes, human resources investors, academia, media, and various other parties
and work culture, as well as the digitalisation of policy for the support and policy synergy developed over time
and institutional business processes in response to to maintain stability and drive the national economic
effective, efficient and compliance (2EC) formulation recovery. We sincerely hope this report is well received
and implementation. Bank Indonesia also undertook a and serves as an important and trusted reference when
planned, programmed and transparent HR transformation formulating our collective efforts towards building
to strengthen competent, professional, and agile leaders national economic recovery optimism in synergy.
with integrity. Bank Indonesia also accelerated digital
transformation to support the policy and institutional May God Almighty always bestow His blessings,
business processes towards realising the vision of perfection, and expedience in our collective efforts to
becoming the foremost central bank. advance the economy of Indonesia.
Jakarta, July 2023
Bank Indonesia Governor
Perry Warjiyo
Bank Indonesia Institutional Report 2022 7


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Front row from left to right:

Perry Warjiyo Governor
Destry Damayanti Senior Deputy Governor
Second row from left to right:

Aida S. Budiman Deputy Governor
Doni Primanto Joewono Deputy Governor
Juda Agung Deputy Governor
Filianingsih Hendarta Deputy Governor
EXECUTIVE
SUMMARY
Bank Indonesia Headquarters Building

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Economic Outlook and Challenges while maintaining stability. With early signs of economic
recovery and to protect the domestic economy from
The re-emergence of global economic risks in 2022 global contagion, monetary policy was oriented towards
posed various challenges for efforts to accelerate maintaining stability (pro-stability), while focusing the
the national economic recovery. Global headwinds four other policy elements, namely macroprudential
primarily stemmed from the war between Russia and policy, payment system policy, money market deepening
Ukraine, which reignited global political and economic as well as economic and financial inclusion, on stimulating
fragmentation. In general, five main interrelated issues economic growth (pro-growth). Fiscal and monetary
emerged that demanded vigilance due to their potential policy synergy was further strengthened by Bank
impact on the national economy. First, world economic Indonesia’s participation in funding the State Revenue
growth decelerated in response to increasing global and Expenditure Budget (APBN), including the health
political and economic fragmentation, with the risk of and humanitarian budgets for Covid-19. Bank Indonesia
recession escalating in the United States (US) and Europe also strengthened coordination with the Government
(slow growth). Second, inflation soared in advanced and Financial System Stability Committee to maintain
economies due to disruptions affecting food and energy the stability of the financial system and revive lending/
supply chains (high inflation). Third, monetary policy financing to businesses in priority sectors in order to
rates increased higher for longer, including the Federal foster economic growth, exports, as well as economic and
Funds Rate (FFR) (higher for longer). Fourth, the US financial inclusion.
dollar appreciated sharply given the FFR hikes and global
financial market uncertainty, thus triggering broad- One important agenda that needed to be raised in
based currency pressures, including against the Rupiah 2022 was Indonesia’s G20 Presidency, entitled Recover
(strong dollar). Fifth, the cash is king phenomenon Together, Recover Stronger. This global agenda has
emerged in line with high risk perceptions amongst global strategic meaning to strengthen global coordination
investors, leading to a rebalancing as funds flowed out in mitigating the near-term global economic risks and
of developing economies, including Indonesia, towards strengthening global economic resilience in the medium
liquid investment instruments and cash equivalents. term. In conjunction with the Ministry of Finance and
These developments demanded urgent vigilance and other government ministries/agencies, Bank Indonesia
an optimal policy response due to the potential risk of was active in the finance track. Six main agendas were
stagflation, or even resflation (economic recession and the focus of discussion in the finance track, namely
high inflation) if left unchecked. post-pandemic exit strategies, overcoming the scarring
effect of the pandemic, payment system innovation in
Bank Indonesia Policy Mix the digital era, fostering sustainable finance, increasing
Response 2022 financial inclusion, as well as the international tax
system. Indonesia’s G20 Presidency successfully issued
various agreements and recommendations to serve as
Bank Indonesia strengthened policy synergy and
recommendations and/or considerations for member
innovation with the Government and Financial System
countries in terms of implementation further policies.
Stability Committee (KSSK) to maintain economic
resilience against the global risks, while preserving
Consistency, Innovation, and Synergy are key factors in
national economic recovery momentum. The
maintaining stability and supporting national economic
Government oriented fiscal policy as a shock absorber
recovery from the threat of crisis caused by the Covid-19
to protect the public, support priority sectors and foster
pandemic and global turmoil. Consistency, Innovation, and
national economic recovery, including massive fiscal
Synergy also represent the spirit and commitment of Bank
stimuli to control the deleterious impact of Covid-19 and
Indonesia in terms of strengthening national economic
stabilise domestic prices. Bank Indonesia focused on all
resilience, recovery, and revival moving forward towards an
policy mix instruments, as an integral part of the national
Advanced Indonesia - Indonesia Maju.
policy mix, towards accelerating the economic recovery,

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Bank Indonesia Institutional Bank Indonesia is also implementing a planned,

Transformation programmed and transparent HR Transformation to
strengthen competent, professional, and agile leaders
Bank Indonesia continued the institutional with integrity. In 2022, HR transformation focused on
transformation that began in 2018 to build a credible, the development of supporting infrastructure for digital
professional, accountable and transparent central bank human capital management and strengthening the
with good governance. The transformation focuses on Employee Value Proposition (EVP) in accordance with
the areas of policy, organisation, and business processes, the organisational strategy.
human resources and work culture, as well as digital
aspects as a concrete measure to build a credible, Bank Indonesia accelerated Digital Transformation of
professional, accountable, and transparent central bank the policy and institutional business processes based
with good governance. on the Bank Indonesia Digital Innovation Masterplan
(RIVIBI) towards the vision of becoming the foremost
Policy Transformation includes the development of central bank. As contained in RIVIBI, the digital
various blueprints/frameworks, instruments and transformation strategy of Bank Indonesia focuses on
infrastructure to maintain price stability and exchange three main strategies: (i) developing digital business
rate stability, while preserving the stability of the platforms to support the policies and institutions, (ii)
financial system and nurturing sustainable economic developing omni-data intelligence, and (iii) developing
growth. The transformation focuses on monetary, digital infrastructure.
macroprudential and payment system policy as well
as supporting policies. In 2022, policy transformation Bank Indonesia Institutional
covered: (i) promulgating regulations concerning Performance
the main policy mix framework, (ii) developing
sustainable macroeconomic policies, (iii) expanding Bank Indonesia achieved sound and optimal
and strengthening Local Currency Settlement (LCS) performance, as reflected by the Key Performance
to become Local Currency Transactions (LCT), (iv) Indicators (KPI) across 12 Strategic Programs (SP)
developing the Digital Rupiah, and (v) expanding Cross- and financial performance, which exceeded the
Border QR Code Indonesian Standard (QRIS). targets for 2022. Against a backdrop of dynamic
global and domestic economic challenges, the Bank
Organisational and Business Process Transformation is Indonesia policy mix effectively maintained solid
oriented towards strengthening institutional excellence economic performance, supported by institutional
as well as the digitalisation of policy and institutional credibility through an institutional policy mix.
business processes in response to effective, efficient Performance in 2022 was confirmed by national and
and compliant (2EC) formulation and implementation. international recognition and awards, as well as the
In 2022, transformation focused on: (i) strengthening positive perception of stakeholders concerning the
the institutional policy mix, (ii) strengthening decision- policy response and institutional management of Bank
making in line with business process re-engineering, Indonesia.
and (iii) preparing to relocate the national capital city to
support government programs.

01
ECONOMIC
OUTLOOK AND
CHALLENGES
Bank Indonesia Representative Office

Building of Aceh Province

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ECONOMIC OUTLOOK
AND CHALLENGES
T
he global economy continued facing challenges in 2022. Geopolitical
tensions exacerbated economic fragmentation and undermined the
economic outlook, while elevating global financial market uncertainty.
In general, the global economy in 2022 faced five serious challenges that
could potentially downgrade the world economic outlook, including the emerging
risk of recession and high inflation (resflation) if the fragmentation remains
unchecked. The five challenges were as follows: (i) moderating world economic
growth (slow growth), (ii) soaring inflation due to global food and energy prices
(high inflation), (iii) higher for longer monetary policy rates (higher for longer),
(iv) strong US dollar (strong dollar), and (v) rebalancing of global investor funds
towards liquid assets (cash is king). Ultimately, the global economic challenges
demanded strong international cooperation regionally and multilaterally.
Policy synergy between Bank Indonesia, the Government and Financial System
Stability Committee (KSSK) ensured the national economic recovery process
remained intact in 2022 despite deteriorating economic conditions globally.
Various economic indicators demonstrated sound performance, supported
omni-data of the digital economy and finance as a catalyst of national economic
recovery. External stability was maintained amid increasing global financial
market uncertainty, underpinned by a solid Balance of Payments (BOP), with
a current account surplus amassed on strong exports given high international
commodity prices and growing global demand for Indonesian commodities. CPI
inflation at the end of 2022 was significantly lower than previously projected
due to the weak second-round effect of fuel price adjustments on volatile food
(VF) inflation and administered prices (AP) inflation. The stability of the financial
system was maintained with a high Capital Adequacy Ratio (CAR) recorded in
the banking industry, accompanied by low non-performing loans (NPL). Ample
liquidity was available in the banking system and economy, thus supporting new
loan disbursements and state budget (APBN) financing.

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G20 Indonesia Presidency: 3rd Finance Ministers and Central Bank Governors (FMCBG) Meeting
Global economic turmoil increased in 2022 on the back assets (cash is king). Such challenges demanded close
of geopolitical tensions and economic recession risk. monitoring and an optimal response due to the ongoing
Despite the heightened challenges, strong policy synergy risk of stagflation and resflation.
between Bank Indonesia, the Government and Financial
System Stability Committee (KSSK) ensured the national Political and economic fragmentation, coupled with
economic recovery process remained intact, with aggressive monetary policy tightening, led to global
economic stability maintained in 2022. Bank Indonesia economic moderation in 2022, accompanied by the
expects the economic recovery to continue in 2023, with risk of recession. Slower growth in 2022 was primarily
external stability and financial stability maintained. In attributable to geopolitical tensions triggered by the
the medium term, Bank Indonesia projects increasing Russia-Ukraine war, which disrupted global supply chains
economic performance on a trajectory towards an that were still reeling from the trade war between the US
advanced Indonesia - Indonesia Maju (Onward Indonesia). and China, coupled with stringent mobility restrictions
in China to break the domestic chain of Covid-19
1.1. Global Economy transmission. Economic moderation is expected to
persist in 2023, despite improving on the previous
In general, the global economy in 2022 confronted projection in line with a slower global disinflation process
five serious challenges that demanded vigilance. First, given the positive impact of economic reopening in China
world economic growth decelerated (slow growth). and improvements in the global supply chain. Economic
Second, inflation soared due to higher global food and growth forecasts for the US and Europe have been
energy prices (high inflation). Third, monetary policy upgraded, accompanied by a lower risk of recession.
rates increased higher for longer (higher for longer). The promising global economic outlook is expected,
Fourth, the US dollar appreciated sharply, thus triggering however, to edge up non-energy commodity prices, amid
broad-based currency pressures (strong dollar). Fifth, a downward global oil price trend as supply disruptions
rebalancing of global investor funds towards liquid are overcome.

Global inflationary pressures intensified in 2022, Negative risk perception in global financial markets
primarily in response to rising global energy and food also deteriorated, inducing a rebalancing of portfolio
prices caused by the Russia-Ukraine conflict, as well investment to liquid assets (cash is king). A build-up of
as higher wages and tight labour markets in the US various risks, including interest rate risk, currency risk,
and Europe. Milder global inflationary pressures are financial asset valuation risk and credit spread risk, in line
anticipated in 2023 before stabilising in 2024, influenced with the growing risk of economic recession, high inflation,
by positive developments in terms of the Russia- a narrower interest rate differential between advanced
Ukraine war as the fundamental assumptions for the and developing economies and a strong US dollar, elevated
projections, including consensus between Russia and the role of the risk premium in determining portfolio
Ukraine concerning the Black Sea Initiative, the gradual investment decisions rather than the interest rate
unwinding of inward-looking policies, as well as energy differential between countries. In addition, geopolitical
crisis mitigation measures in several European countries tensions also triggered ultra-prudent behaviour among
by reallocating supply sources from other countries amid global investors, leading to a change in preferences away
ongoing energy-related sanctions. Notwithstanding, the from securities to cash assets that are more readily
promising global economic outlook and expectations of convertible. Consequently, capital has flowed out of
higher wages due to tightness in US and European labour developing economies since the beginning of 2022. This
markets will prolong the global disinflation process. trend compounded pressures on various currencies and
eroded the ability to issue bonds to finance the fiscal
Interest rates increased in 2022, which are expected deficit in various developing economies.
to remain higher for longer in response to inflationary
pressures. Aggressive monetary policy tightening to International cooperation plays a strategic role in
dampen inflationary pressures, spearheaded by advanced navigating the world economy and overcoming the
economies, has spread to developing economies as crisis impact to recover together. Various regional and
well. The US Federal Reserve (Fed) accelerated policy multilateral cooperation initiatives were implemented with
normalisation to overcome a build-up of inflationary a focus on efforts to drive the global economic recovery
pressures stemming from tight labour markets and and strengthen resilience by maintaining economic
rising commodity prices caused by the Russia-Ukraine and financial system stability globally. International
war. In response, several other advanced economies organisations have instituted various policies, including
immediately hiked policy rates, including the European the International Monetary Fund (IMF), World Bank, Bank
Union, UK, Canada, Australia and New Zealand. Seeking for International Settlements (BIS), and Financial Stability
to maintain the interest rate differential, developing Board (FSB), and initiated international cooperation, such
economies have also raised policy rates. Higher for as the G20, Asia-Pacific Economic Cooperation (APEC),
longer policy rates are expected to bring inflation back and Association of Southeast Asian Nations (ASEAN),
towards its long-term trend. which aim to ensure all countries can recover together
towards stronger growth. Bank Indonesia remains actively
Aggressive monetary policy tightening, economic involved in various regional and multilateral international
moderation and global uncertainty prompted a cooperation forums in synergy with the Government
strong US dollar. The strong US dollar impacted and other relevant authorities. After Indonesia’s G20
currency dynamics in numerous jurisdictions. Many Presidency in 2022, Indonesia has been appointed to the
currencies experienced sharp depreciation, which ASEAN Chairmanship in 2023. In line with its G20 role,
could potentially disrupt economic stability. This Indonesia has the opportunity to advocate various priority
phenomenon forced central banks, including emerging agendas from the G20 finance track in the ASEAN region.
Asia, to intervene in foreign exchange markets to As ASEAN Chair, Indonesia is also the ASEAN+3 Co-Chair
maintain currency stability. Looking ahead, the US in 2023 with Japan. As ASEAN Chair and ASEAN+3 Co-
dollar could continue appreciating in line with further Chair, this represents an important and historic milestone
FFR hikes by the Fed. to showcase Indonesia’s regional leadership.

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1.2. Domestic Economy market uncertainty. The position of reserve assets at

the end of December 2022 stood at USD137.2 billion,
Policy synergy between Bank Indonesia, the which is expected to increase further, thus reinforcing
Government and the Financial System Stability Indonesia’s external resilience. The Rupiah is stable and
Committee (KSSK) kept the national economic tracking an appreciatory trend due to the stabilisation
recovery process intact in 2022 against a backdrop measures taken by Bank Indonesia in response to
of global economic moderation. The economic increasing global financial market uncertainty.
recovery process was supported by increasing private
consumption and investment, persistently solid Inflation in 2022 was manageable and below the
exports and maintained public purchasing power previous projection despite exceeding the 3.0%±1%
despite a build-up of inflationary pressures. Stronger target corridor. CPI inflation at the end of 2022 was
private consumption endured as mobility as well as significantly lower than previously projected due to a
economic and financial activities returned. Investment weaker a second-round effect of fuel price adjustments
also remained solid given the completion of several to volatile food (VF) inflation and administered prices
national strategic projects (PSN) and an influx of (AP) inflation. This was linked to close policy synergy
foreign direct investment (FDI). The export outlook between the (central and regional) Government, Bank
is strong in line with persistent demand from key Indonesia and various other strategic partners, including
trading partner countries and policy support from the the Central and Regional Inflation Control Teams (TPIP
Government, including policies to stimulate exports and TPID) and National Movement for Food Inflation
of crude palm oil (CPO) and downstream products. Control (GNPIP), to lower the pace of food inflation by
Spatially, positive export performance was supported ensuring supply availability, uninterrupted distribution,
by all regions, particularly Kalimantan and Sumatra, price stability and effective communication, and
where growth remained solid. By sector, the outlook to dampen the impact of fuel price adjustments.
is promising in line with domestic demand and strong Meanwhile, core inflation was maintained within the
export performance, particularly in the major sectors, 3.0%±1% target in line with the weak knock-on effect
such as trade, mining, and agriculture. Consequently, of fuel price adjustments, mild inflationary pressures
the domestic economic outlook for 2023 is solid, with on the demand side, managed inflation expectations
the trend expected to persist in the medium term, in line with the optimal BI monetary policy response,
accompanied by a resilient economic structure to and controlled imported inflation, supported by Rupiah
support national economic transformation towards an stabilisation policy. Inflationary pressures are expected
Advanced Indonesia - Indonesia Maju. to subside in 2023 to a level below the previous
forecast in line with the outlook for lower international
External stability was maintained despite increasing commodity prices, low inflation expectations, conducive
global financial market uncertainty. External sector weather conditions, stable exchange rates, and strong
resilience in Indonesia remained solid in 2022, policy synergy, encompassing the TPIP and TPID teams
underpinned by a healthy Balance of Payments (BOP) as well as the GNPIP movement. Core inflation is
and positive current account in line with strong export expected to return to the target corridor sooner than
performance given high commodity prices and growing previously anticipated, in line with managed imported
global demand for Indonesian commodities. In 2023, inflation, a relatively stable rupiah as well as a front-
BOP performance is forecast to remain solid, supported loaded, pre-emptive and forward-looking monetary
by a healthy current account as well as a capital and policy response.
financial account surplus. Such developments will
stem from a resurgence of foreign capital inflows in Financial system stability was maintained,
the form of FDI and portfolio investment in line with accompanied by a high Capital Adequacy Ratio (CAR)
positive investor perception of the national economic in the banking industry and low NPL ratio. Ample
outlook coupled with early signs of less global financial liquidity was available in the banking industry and

economy, thus supporting new loan disbursements and 1.3. Institutional Facet
state budget (APBN) financing. Outstanding loans/
financing disbursed by the banking industry increased Global and domestic economic challenges, including
in 2022, thereby supporting the business and economic post-pandemic exit strategies, accelerating digital
recovery. On the supply side, accommodative liquidity megatrends and various sustainability issues, such
policy by Bank Indonesia, lower credit risk, and loose as climate change as well as economic and financial
lending standards ensured the banking industry could inclusion, present massive challenges not only for
channel loans/financing. Better corporate performance policymaking and implementation, but also the
was reflected in improvements in the ability to re-pay, institutional arrangements of the central bank. Since
higher sales, and stronger capital expenditure. With the pandemic, calls for central banks around the world to
loose liquidity conditions in the banking system, lending expand their role are becoming louder. In Indonesia, the
rates were more rigid to the impact of policy rate implications on Bank Indonesia’s mandate, jurisdiction
hikes. Moving forward, efforts to strengthen banking and independence must be scrutinised regarding
system resilience are required to mitigate various risks, deliberations on the draft bill concerning Financial
including domestic macroeconomic conditions and Sector Reform, Development and Strengthening, which
external shocks. has been included in the National Priority Legislation
Program since 2021 as a government initiative.
Digital economy and finance transactions continued
to develop rapidly in line with Bank Indonesia Policy, organisational and business process, HR and work
policy to accelerate payment system digitalisation culture as well as digital transformation undertaken by
in support of the national economic recovery. Such Bank Indonesia since 2018 must be accelerated and honed
developments are consistent with greater public to provide optimal support for task implementation and
acceptance and growing public preference towards the Bank Indonesia mandate in response to emerging
online retail as well as the convenience of the digital external challenges. Rapid digital development presents
payment system and the speed of digital banking. opportunities and challenges for Bank Indonesia.
The emergence of QRIS as the national standard for Digitalisation of the policy and institutional business
QR payments has accelerated the expansion of the processes must be accelerated to increase the effectiveness
ecosystem for digital merchants, users, and digital and efficiency of task and function implementation in
payment interoperability. The dominance of MSME the digital era. This must be accompanied by a broad and
merchants indicates the role of QRIS as an entry point aggressive increase in the digital mindset and capabilities
to financial inclusion for MSMEs. Furthermore, QRIS of leaders and employees. In addition, the evolving
has encouraged payment service providers, especially demographics of staff at Bank Indonesia demand a stronger
banks, to adopt and develop mobile applications in employee value proposition (EVP) to maintain motivation
order to join the expanding QRIS ecosystem. and increase employee productivity to give their best for the
organisation. Increasing uncertainty necessitates stronger
A more detailed assessment of global and domestic visionary leadership and strategic foresight leadership
economic performance is available in the Economic that is agile to change with ethical behaviour according to
Report on Indonesia (LPI) 2022. national and religious values.

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02
BANK INDONESIA
POLICY RESPONSE

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BANK INDONESIA
POLICY RESPONSE
B
ank Indonesia instituted a policy mix and strengthened policy synergy
with the Government and Financial System Stability Committee (KSSK)
within a national policy mix framework to accelerate the economic
recovery and simultaneously maintain stability. Towards that end,
monetary policy was oriented towards maintaining stability (pro-stability),
while the four other instruments were directed towards accelerating the
national economic recovery (pro-growth).
Bank Indonesia monetary policy, comprising liquidity policy, exchange

rate policy, and interest rate policy, was oriented towards maintaining
macroeconomic stability. Meanwhile, accommodative macroprudential policy
was strengthened in synergy with KSSK policy to revive bank lending to the
business community and support the national economic recovery. This was
bolstered by payment system policy that focused on driving economic recovery
and accelerating inclusive digitalisation. Bank Indonesia’s three main policies
were also supported by several supporting policies in the form of money market
deepening as well as the green and inclusive economy and finance, which were
also directed towards accelerating the national economic recovery.
Ultimately, the Bank Indonesia policy mix, which is implemented in synergy

with government and KSSK policies, effectively maintained growth momentum
and economic stability in Indonesia.

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National Coordination Meeting (Rakornas) on Inflation Control 2022
Bank Indonesia implemented a policy mix in 2022 maintaining macroeconomic stability. Bank Indonesia
in synergy with the direction of national policy to implemented the three policies comprehensively and
accelerate the economic recovery and maintain in synergy in pursuit of a pro-stability monetary policy
stability. Bank Indonesia instituted a policy mix with stance. In other words, the monetary policy stance taken
‘one sour pill and four sweet pills’ in response to elevated was not only measured through changes in interest rate
global financial market uncertainty caused by monetary policy yet also liquidity policy.
policy tightening in advanced economies, particularly the
United States (US), against a nascent national economic From a macroprudential perspective, Bank Indonesia
recovery in Indonesia. Towards that end, monetary continued strengthening accommodative macroprudential
policy was oriented towards maintaining stability (pro- policy in synergy with KSSK policies to revive lending/
stability), while the four other instruments, namely financing to the business community and bolster
macroprudential policy, payment system digitalisation, the national economic recovery. Accommodative
money market deepening as well as the green and macroprudential policy was pursued through loose
inclusive economy and finance, were directed towards rupiah reserve requirement (RR) incentives for banks
accelerating the national economic recovery (pro- disbursing funds to priority sectors and MSMEs and/
growth). In practice, such policy synergy effectively or meeting the Macroprudential Inclusive Financing
maintained growth momentum and economic stability in Ratio (RPIM) target, while expanding the scope
Indonesia against a backdrop of global economic turmoil. of priority sectors eligible for the incentive and
maintaining a loose Countercyclical Capital Buffer
2.1. Bank Indonesia Policy Stance (CCyB), Macroprudential Intermediation Ratio (MIR),
Conventional and Sharia Macroprudential Liquidity
From a monetary perspective, liquidity policy, exchange Buffer (MPLB), and Loan/Financing-to-Value (LTV/
rate policy and interest rate policy were oriented towards FTV) Ratio on property loans.

Bank Indonesia Special Week Expo 2020 Dubai “Digitalizing the Payment System in Supporting The Creation of an Inclusive
Economy in Indonesia”
In the payment system area, payment system policies oriented towards accelerating the national economic
to support the economic recovery and accelerate recovery. Bank Indonesia continued accelerating financial
inclusive digitalisation were implemented. This market deepening to strengthen the effectiveness of
included: (i) expanding QRIS uptake, (ii) intensifying monetary policy transmission as well as infrastructure
the electronification program through the digitalisation and business financing to bolster the national economic
of government social aid programs (bansos), recovery. Digitalisation and strengthening financial
electronification of regional government services, market infrastructure remained ongoing by strengthening
particularly Regional Digitalisation Acceleration and interconnected, integrated, interoperable, secure and
Expansion (P2DD), and integrated transportation reliable money market infrastructures. Bank Indonesia
modes, (iii) strengthening National Open API Payment constantly accelerated development of the national
Standard (SNAP) implementation by accelerating SNAP sharia economy and finance as a new source of inclusive
adoption among banks and non-banks, while providing economic growth in synergy with the Government and
alternative infrastructure options in accordance with other stakeholders. Bank Indonesia also collaborated
the capacity of the participants, (iv) accelerating BI- in synergy to nurture green and inclusive economic and
FAST implementation by increasing participation, financial policies to support the economic recovery by
expanding services and increasing acceptance of the strengthening MSME competitiveness as a new source of
benefits, and (v) adjusting payment system pricing policy national economic growth.
to support the national economic recovery. In terms
of rupiah management, central bank driven policy was 2.2 Bank Indonesia Policy Mix
directed towards providing currency fit for circulation of Response
appropriate denominations through just-in-time refer to
central bank driven, in line with the direction of cashless 2.2.1 Monetary Policy
policy based on efficiency and the national interest.
Monetary policy for stabilisation was pursued by
The three main policies of Bank Indonesia were optimising management of the monetary policy
supported by money market deepening as well as an trilemma through exchange rate stabilisation,
inclusive and green economy and finance, which were liquidity normalisation, policy rate hikes and

Arrangement
maintaining adequate reserve assets. Given the the reserve requirement for conventional commercial
inauspicious global economic performance and banks, sharia banks and sharia business units, which was
outlook, coupled with elevated global financial market subsequently recalibrated at the Board of Governors
uncertainty, optimising management of the monetary meeting in May 2022 as a pre-emptive measure to
policy trilemma became critical. The policy rate anticipate the pace of monetary policy normalisation
remained oriented towards managing core inflation globally. Liquidity normalisation was also supported by
and anchoring inflation expectations to the target strengthening the MO strategy to maintain liquidity in
corridor. Against a backdrop of excessive liquidity, the money markets. Among others, this was achieved
interest rate policy was preceded by liquidity policy by managing liquidity in longer tenor contractionary
normalisation to ensure effectiveness. Exchange rate MO instruments and restructuring contractionary OMO
policy aimed to manage exchange rate stability in line rates, coupled with expansionary policy as signalling
with the currency’s fundamental value and control by taking into account liquidity conditions. The MO
imported inflation. The position of reserve assets was strategy was further strengthened by optimising the
also maintained to support exchange rate stabilisation frequency of longer tenor contractionary OMO auctions,
measures amid a build-up of foreign capital outflow and gradually reducing the frequency of longer tenor
pressures in the form of portfolio investment. expansionary OMO auctions, while maintaining the
availability of liquidity through expansionary daily open
Rupiah stabilisation policy was pursued through market operations, refining rupiah OMO pricing and
foreign exchange market intervention, targeting fine-tuning OMO transactions. This policy effectively
spot and Domestic Non-Deliverable Forward (DNDF) absorbed approximately Rp269.3 trillion of rupiah
transactions, while buying/selling government securities liquidity from the banking system without disrupting
(SBN) in the secondary market and implementing liquidity conditions, as confirmed by the ratio of liquid
the innovative twist operation policy to increase the assets to third-party funds.
attractiveness of SBN yields for foreign portfolio
investment inflows. This innovation was supported by Interest rate policy aimed to maintain stable inflation
strengthening the monetary operations strategy through amid intense external pressures and increasing global
the expansion of SBN series available for sale (AFS) uncertainty. Bank Indonesia held its BI 7-Day Reverse
and honing the pricing formula when selling SBN in the Repo Rate (BI7DRR) at the low level of 3.50% until July
secondary market. Furthermore, rupiah stabilisation 2022 in line with manageable core inflation. As a front-
policy was also strengthened by monetary controls in loaded, pre-emptive and forward-looking measure to
the foreign exchange market and SBN market, which maintain stable inflation moving forward, however, Bank
included optimising DNDF transactions and issuing new Indonesia raised the BI7DRR rate by 25bps in August
MO instruments to facilitate the repatriation of foreign 2022, with subsequent 50bps hikes in September 2022,
exchange proceeds from exports, while leveraging October 2022 and November 2022, followed by a further
cooperation with other central banks. Consequently, 25bps increment in December 2022 to reach 5.50%.
rupiah depreciation in 2022 was less pronounced than Bank Indonesia simultaneously strengthened monetary
in other developing economies, such as India and the operations to boost the transmission effectiveness
Philippines, in line with consistent stabilisation policy and of a higher policy rate in terms of anchoring inflation
the positive perception of foreign investors. expectations by raising the interest rate structure in
the money market in line with the higher BI7DRR rate.
Bank Indonesia normalised monetary policy by gradually Through consistent monetary policy tightening and
reducing excess liquidity in the banking industry through close policy coordination to control inflation with the
incremental hikes in the rupiah reserve requirement (central and regional) Government through TPIP and
that were well-calibrated, well-planned and well- TPID and GNPIP, inflation was recorded below the initial
communicated. At the Board of Governors meeting in projection. Inflation expectations also begun to descend
January 2022, Bank Indonesia decided to gradually raise from 6.5% in September 2022 to 5.5% in December 2022.

2.2.2. Macroprudential Policy banking industry against BI7DRR hikes, and ample
liquidity served to improve the bank intermediation
Bank Indonesia continued strengthening the function. Policy and synergy effectiveness with KSSK
accommodative macroprudential policy stance in were demonstrated by robust credit growth, reaching
synergy with KSSK policies to revive lending/financing to 11.35% in December 2022 in line with improvements on
the corporate sector and bolster the national economic the supply and demand sides.
recovery. Accommodative macroprudential policy was
maintained by refining the Macroprudential Inclusive 2.2.3 Payment System Policy
Financing Ratio (RPIM) and providing incentives in the
form of lower reserve requirements for banks disbursing In accordance with the Indonesia Payment System
funds to priority and inclusive sectors. In addition, Bank Blueprint (BSPI) 2025, policy in 2022 focused on
Indonesia in 2022 held the Countercyclical Capital Buffer three key priority areas, namely regulatory reform,
(CCyB) at 0%, the Macroprudential Inclusive Financing retail payment system infrastructure development
Ratio (RPIM) in the 84-94% range, the Macroprudential and payment system standardisation. Bank Indonesia
Liquidity Buffer PLM at 6% with repurchase agreement continued regulatory reform by streamlining the
(repo) flexibility of 6%, as well as the sharia PLM at 4.5% licensing process through risk and activity-based
with repo flexibility of 4.5%. This was also supported approaches, while enforcing service standards
by a loose Loan/Financing-to-Value (LTV/FTV) Ratio for efficiency and prudence, supported by a solid
for property loans/financing up to a maximum level of oversight function. Seeking to accelerate payment
100%, coupled with loose downpayment requirements system innovation, Bank Indonesia expedited BSPI
on automotive loans/financing to a minimum of 0% for all 2025 implementation by expanding the features and
new motor vehicles. Bank Indonesia also strengthened its acceptance of QRIS and BI-FAST, while applying SNAP
prime lending rate SBDK transparency policy to improve and pursuing payment system industry consolidation to
the effectiveness of interest rate and macroprudential create solid and competitive unicorns from Indonesia.
policy transmission. Bank Indonesia will also expand cross-border payment
system cooperation in the ASEAN region and with other
The accommodative macroprudential policy stance strategic partners. Payment system policy support for
implemented in synergy with the Financial System the economic recovery through pricing policy will also
Stability Committee (KSSK), rigid interest rates in the be continued.
Indonesia Digital Economy and Finance Festival (FEKDI) 2022: “Advancing Digital Economy and Finance: Synergistic and Inclusive
Ecosystem for Accelerated Recovery - Digital Currency”

Arrangement
The range of payment system policies to nurture synergy between Bank Indonesia and the Indonesian
innovation and facilitate digital economic and Navy was also maintained through the Sovereign Rupiah
financial integration were also strengthened by policy Expedition 2022 to support currency circulation in
synergy with the (central and regional) Government, frontier, outermost and remote (3T) regions.
banking industry and industry associations. Synergy
between Bank Indonesia, the Government and 2.2.4 Supporting Policies
HIMBARA banks was also realised through issuance
of the domestic government credit card using the Bank Indonesia accelerated financial market deepening
QRIS mechanism based on sources of credit funds, and development as part of the Money Market
launched by the President of the Republic of Indonesia Development Blueprint (BPPU) 2025. Development
on 29th August 2022. Synergy was also achieved policy for financial market infrastructures (FMI) in
through the SIAP QRIS program at various traditional 2022 focused on development of Electronic Trading
markets and shopping malls in Indonesia, along with Platforms (ETP) and Central Counterparties (CCP). In
intermodal payment and system integration, including addition, Bank Indonesia continued development of
the phased introduction of contactless toll-road the Bank Indonesia – Auction Platform System (BI-
payment technology beginning at the end of 2022, APS), Bank Indonesia – Scripless Securities Settlement
and strengthening the electronification of regional System (BI-SSSS) and Bank Indonesia – Real Time Gross
government transactions through synergy with the Settlement (BI-RTGS) system in alignment with BSPI
National Working Group to Regional Digitalisation 2025 and evolution of digital technology moving forward.
Acceleration and Expansion (P2DD). Synergy between Financial market development and deepening to improve
government ministries/agencies and other authorities the effectiveness of monetary policy transmission in
also ensured a successful Indonesia Digital Economy 2022 focused on developing repo transactions and
and Finance Festival (FEKDI) in 2022, which served strengthening rupiah reference rates. Meanwhile,
as an important side event of the G20 Finance Track initiatives to develop financial instruments in 2022
series, namely the Finance and Central Bank Deputies focused on DNDF transactions, as well as the expansion
(FCBD) Meeting and 3rd Finance Ministers and Central and strengthening of the Local Currency Settlement
Bank Governors (FMCBG) Meeting in Nusa Dua, Bali. (LCS) framework to deepen the foreign exchange market.
Supporting the development of financial products, Bank
In terms of rupiah currency management, Bank Indonesia Indonesia continued strengthening the competencies of
continued transformation efforts in accordance market players, among others by amending the code of
with the applicable stage of the Rupiah Currency ethics and refining treasury certification to enhance the
Management Blueprint (BPPUR) 2025. Transformation integrity and competencies of domestic financial market
was implemented by prioritising digitalisation across all players to compete with international players. Financial
stages of rupiah currency management, from planning, market deepening and development efforts were also
storage and management to circulation, using various implemented by strengthening synergy within the
platforms, such as the Integrated Rupiah Currency Coordination Forum for Development Financing through
Demand and Analytics Application (AKURAT) to Financial Markets (FK-PPPK), including the development
increase the efficiency of currency planning business of financing instruments and derivative transactions
processes, as well as the Rupiah Currency Order and based on environmental, social and governance (ESG)
Withdrawal Application (PINTAR) for the public. Policy along with regulatory harmonisation.

Sharia Economic Festival (FESyar) Sumatera Region 2022
Bank Indonesia continued accelerating development in 2022 to provide a greater contribution to the
of the national sharia economy and finance as a new advancement of sharia economy and finance in Indonesia.
source of inclusive economic growth in synergy with the Bank Indonesia also enhanced the MSME development
Government and other stakeholders. Development of program through three policy pillars, namely: (i)
the sharia economy and finance is implemented through corporatisation, (ii) capacity building, and (iii) financing, to
three pillars, namely: (i) empowerment of the sharia create productive, innovative and adaptive micro, small
economy, which includes strengthening the halal value and medium enterprises (MSMEs). The various policies
chain (HVC) ecosystem, focusing in 2022 on key HVC instituted to increase MSME competitiveness were
sectors, such as halal food and modest Muslim fashion, further strengthened by close synergy with government
(ii) sharia financial market deepening, by issuing Inclusive ministries/agencies, associations and communities,
BI Sukuk (SukBI), developing sharia-compliant hedging which included hosting the Karya Kreatif Indonesia (KKI)
swaps, and strengthening sharia financial infrastructure 2022, or Indonesia Creative Works Exhibition, to provide
regulations, among others, and (iii) strengthening post-pandemic revival momentum for MSMEs, coupled
research, assessment and education, which includes with policy synergy through the National Movement
hosting the Sharia Economic Festivals (FESyar) and for Food Inflation Control (GNPIP) to expand the role of
Indonesia Shari’a Economic Festival (ISEF), strengthened MSMEs in terms of controlling inflation.

Arrangement
Bank Indonesia maintained international policy in international perception concerning the national
synergy with the Government to achieve macroeconomic economy, particularly among rating agencies and foreign
and financial system stability, thereby supporting investors, which in 2022 succeeded in terms of Indonesia
the economic recovery and advancing the interests maintaining investment grade according to three
of Bank Indonesia and the Indonesian economy. The international rating agencies, with an upgrade in the
Global Financial Safety Net (GFSN) was strengthened outlook to stable by S&P. In 2022, the Ministry of Finance
through Bilateral Currency Swap Arrangements (BCSA), in conjunction with Bank Indonesia, under the auspices of
Local Currency Bilateral Swap Arrangements (LCBSA), Indonesia’s G20 Presidency, led G20 member countries
Repurchase Agreements (repo) and liquidity management through discussions on six priority agendas in the finance
with other central banks and international organisations. track, while reiterating its commitment to confronting
Bank Indonesia also promoted LCS cooperation and the emerging global economic challenges.
other regional payment connectivity (RPC) initiatives in
line with the G20 and ASEAN priorities in 2023 under A more detailed assessment of the Bank Indonesia
Indonesia’s chairmanship. Furthermore, Bank Indonesia policy response is available in the Economic Report on
constantly plays an active role in strengthening positive Indonesia (LPI) 2022.
Indonesia Flagship Financial Literacy Program (Like It!): “Sustain Habits in Investing, Invest in Sustainable Instruments”

Prospek dan Tantangan Respons Kebijakan Transformasi Kelembagaan
Perekonomian Bank Indonesia Bank Indonesia
03
BANK INDONESIA
INSTITUTIONAL
TRANSFORMATION

Building of South Sumatra Province
Laporan Kelembagaan Bank Indonesia 2022

32
Capaiann Kinerja Anggaran Tahunan
Lampiran
Bank Indonesia 2022 Bank indonesia

33
Foreword Summary And Challenges Policy Response Transformation
BANK INDONESIA INSTITUTIONAL

TRANSFORMATION
S
trengthening the Bank Indonesia policy mix and synergy with government
and KSSK policies have effectively maintained recovery momentum and
economic stability in Indonesia. Towards that end, Bank Indonesia is
continuing its transformation program that has been begun in 2018 to
create a credible, professional, accountable and transparent central bank based
on good governance. Transformation affects several areas, namely policy, the
organisation and business processes, human resources and work culture, as well
as a digital.
Policy transformation involves the development of various blueprints/

frameworks, instruments and infrastructures to maintain price and exchange
rate stability, payment system stability and the stability of the financial system
to support sustainable economic growth, based on the application of good
and professional institutional governance. Meanwhile, transformation of the
organisation and business processes focuses on strengthening institutional
excellence and digitalisation of the policy and institutional business processes
based on effective, efficient and compliance (2EC) performance.
The transformation of human resources and twork culture is planned,

programmed and transparent, which aims to strengthen competent and
professional leadership with integrity and agile to change. Meanwhile, digital
transformation intends to support more effective and efficient policy and
institutional business processes towards realising the vision of becoming the
foremost digital central bank.

Arrangement
Annual Meeting of Bank Indonesia (PTBI): Synergy and Innovation Strengthening Resilience and Economic Revival Towards
Advanced Indonesia
Bank Indonesia seeks to achieve its Vision and Mission 3.1.1. Monetary Sector Transformation
through 12 strategic programs (SP) that encompass the
execution of all central banking duties. The SP are major 1) Issuing Regulations Concerning the Main Policy Mix
components of the Bank Indonesia Strategic Business Framework
Plan (SBP) through to 2025. The SBP is a medium-term Bank Indonesia issued internal regulations concerning
business plan implemented in stages through several the Bank Indonesia Policy Mix as a reference when
transformation agendas. In 2022, Bank Indonesia formulating Bank Indonesia policy. The regulations aim
expanded and strengthened the comprehensive to strengthen the main policy mix framework, which is
transformation program that began in 2018 in terms of necessary to maintain BI policy mix effectiveness in
policy transformation and institutional transformation, terms of maintaining stability and bolstering economic
while addressing the rapid pace of digitalisation. growth amid changes in the strategic environment,
coupled with increasingly complex and dynamic global
3.1 Policy Transformation and domestic challenges.
Policy transformation is a multi-year program The Bank Indonesia main policy mix framework is
implemented by strengthening the policy mix in strengthened as part of the Bank Indonesia policy
pursuit of the mandate to maintain rupiah stability transformation program. The main policy mix
(inflation and exchange rates). Transformation involves integrates three key policies, namely monetary policy,
the development of various blueprints/frameworks, payment system policy and macroprudential policy,
instruments and infrastructures to maintain price and underpinned by the following supporting policies: (i)
exchange rate stability, payment system stability and regional economy and finance, (ii) international, (iii)
stability of the financial system to support sustainable central banking services, (iv) data and information
economic growth based on the application of good and systems, and (v) the organisation and governance.
professional institutional governance.

Bank Indonesia strengthened its main policy mix 3) Expanding and Strengthening Bilateral Local
framework in harmony with the direction of Bank Currency Cooperation
Indonesia’s overarching goal/mandate in accordance Bank Indonesia continued various efforts to expand
with deliberations on the draft bill concerning and strengthen the use of local currencies. Despite
Financial Sector Development and Strengthening the use of local currencies tracking a positive trend,
(RUU P2SK). In alignment with the P2SK draft bill, Bank Indonesia must seek to ensure sustainability
the Bank Indonesia main policy mix framework aims considering the shallowness of non-USD liquidity in
to create and maintain rupiah stability, payment the local currencies of partner countries.
system stability, and financial system stability towards
sustainable economic growth. Bank Indonesia strengthened the Local Currency
Settlement (LCS) framework, which evolved into
2) Finalising Strategic Reserve Asset Management Local Currency Transactions (LCT). Strengthening
Policy and Framework was achieved, among others, by expanding the
Bank Indonesia strengthened reserve asset scope of underlying transactions from only trade
management by refining the reserve asset management and investment transactions to currently include
framework. This was done to maintain the preserved all economic and financial transactions, along with
value of FX reserves and implemented by adjusting integration into cross-border payment initiatives.
the Strategic Asset Allocation (SAA), comprising the
investment tranche and liquidity tranche, achieving A concrete measure taken by Bank Indonesia to expand
the held-to-maturity (HTM) portfolio allocation, and strengthen local currency use was to expand
and creating a liquidity tranche based on market LCT cooperation with partner countries. In 2022,
conditions and sources of reserve assets in line with Bank Indonesia expanded the scope of LCT partner
the predetermined target. In addition, to ensure the countries by signing a Memorandum of Understanding
effective and efficient management and use of reserve (MoU) with the Monetary Authority of Singapore
assets, Bank Indonesia also introduced categories (MAS), thus signalling the joint intention to develop
based on the source of international reserves. an LCT framework moving forward. In addition, Bank
Indonesia also increased the number of appointed
Adequate reserve assets were maintained, among cross currency dealer (ACCD) banks, specifically for the
others, through coordination with the Government LCT scheme between Indonesia and China.
in terms of issuing global bonds and/or drawing
foreign loans, as well as strengthening coordination Bank Indonesia also collaborated in synergy with
to meet the international adequacy standard for various domestic parties to implement proactive and
forex reserves, including the management of foreign targeted socialisation activities, while exploring the
exchange proceeds of exports (DHE). This was provision of convenient facilities and incentives for
supported by international cooperation with other business players. In 2022, Bank Indonesia and the
central banks in the region, including Local Currency Directorate General of Customs and Excise (DJBC),
Bilateral Swap Agreements (LCBSA). Seeking to Ministry of Finance, agreed an initiative to provide
ensure that the strengthening objectives were additional benefits to exporters and importers
achieved, Bank Indonesia also harmonised the profile using local currency transactions in the form of
of foreign exchange reserves managed by external expedited customs clearance for importers using local
parties. Meanwhile, Bank Indonesia honed reserve currency transactions, which will begin in 2023. This
asset management regulations and provisions initiative represents a preliminary step in facilitating
to maintain good governance. In addition, Bank collaboration between government ministries/agencies
Indonesia also monitored the adequacy of foreign as a reference for providing incentives or facilitation by
exchange reserve based on predetermined indicators. other relevant government ministries/agencies.

Arrangement
3.1.2 Macroprudential Sector Inclusive Financing Ratio (RPIM) through purchases of

Transformation continuous bonds and/or disbursing financing to SDG
Indonesia One and infrastructure financing managers
1) Sustainable Macroprudential Policy Development based on environmental, social and governance (ESG)
Bank Indonesia continues to develop sustainable aspects.
macroprudential policies. These policies are
developed to maintain the stability of the financial Bank Indonesia also coordinates in synergy with various
system through efforts to increase green finance and stakeholders. At the national level, Bank Indonesia
support an orderly, just and affordable transition, is actively involved in formulating draft bills of the
while strengthening mitigation measures and systemic Sustainable Finance Committee in conjunction with OJK
risk management for climate change and developing and the Ministry of Finance. In 2022, Bank Indonesia
sustainable finance. supported development of the ASEAN Senior Level
Committee (SLC) on Financial Integration TFSF, including
Supporting the availability of supporting data and development of a sustainable finance curriculum,
information for sustainable finance, Bank Indonesia stocktaking the sustainable banking practices initiative
through the G20 Sustainable Finance Working Group in ASEAN, monitoring the amendments to the ASEAN
(SFWG) fully supports efforts to publish sustainable Taxonomy for Sustainable Finance, and formulating the
standards by the International Sustainability Standards ASEAN Green Map concept.
Board (ISSB). Towards that end, the Institute of
Indonesian Chartered Accountants (IAI) will shortly Supporting sustainable macroprudential policies,
establish a National Standards Board to adopt such Bank Indonesia continued strengthening research
standards as Indonesian standards. Supporting into climate change. In synergy with the Coordinating
implementation, Bank Indonesia in 2022 developed the Ministry for Maritime Affairs and Investment, Bank
Integrated Commercial Bank Report (LBUT) to capture Indonesia is currently researching the impact of
bank emissions data (including the emissions of bank climate change transition on the Indonesian economy.
borrowers) and categorise them based on the green Meanwhile, with OJK, the Ministry of Finance and
taxonomy currently under development by Financial Indonesia Deposit Insurance Corporation (LPS),
Services Authority (OJK) and the Ministry of Finance. Bank Indonesia has completed stress tests regarding
the impact of climate change on the banking industry
In conjunction with the Coordinating Ministry for in Indonesia.
Maritime Affairs and Investment, Bank Indonesia
developed version 1.0 of the Green Calculator to Bank Indonesia has also increased the amount of
assist companies measure carbon emissions as a research and assessments on sustainable finance,
key to success of the transition strategy. The green the circular economy, the development of low
calculator is free to use and voluntary for MSMEs and carbon technology and green MSMEs. In 2022, Bank
non-complex companies that are not subject to the Indonesia launched the Green MSME Business Model
Economic Value of Carbon (NEK) rules and/or sectoral Development Review, containing a development
regulations. framework and implementation strategy for green
MSME business models with a focus on the agricultural
In addition to developing data and information as well sector and handicrafts as follows: (i) identifying the
as providing capacity building support for business definitions, criteria and indicators of green MSMEs,
players to implement sustainable practices, Bank (ii) preparation and analysis of green MSME business
Indonesia also provides incentives to accelerate green models, and (iii) strategies and recommendations for
finance. The incentives include: (i) looser loan-to- implementing a green MSME program. Furthermore,
value (LTV) obligations for green housing loans up to Bank Indonesia also actively provided research
100% and downpayment requirements on battery grants to various national researchers in order to put
electric vehicles (BEV) down to 0% from 2020, and forward recommendations for the development of
(ii) incentives for meeting the Macroprudential sustainable finance.

2) Development of Supervisory Technology (SupTech) b) Indicators for the daily use of electronic money
Bank Indonesia continued transforming the monetary, (e-money) piloting data: processing granular
macroprudential and payment system supervisory data concerning the e-money of non-bank PSPs
functions through the development of SupTech to strengthen payment system supervision,
infrastructure in line with the Bank Indonesia particularly of non-bank PSPs.
supervisory framework. SupTech development aims c) An early warning model of liquidity risk in the
to create more agile, responsive and innovative banking industry: processing behavioural and
supervision and oversight, which are required in performance data for the banking industry
response to the challenge of a changing financial using machine learning algorithms to assist the
system landscape in line with the influx of business surveillance process, particularly in terms of
players to the financial system, the complexity and predicting potential liquidity risk in the banking
interconnectedness, as well as data and information industry.
management in the financial system. In 2022,
Bank Indonesia developed the mobile surveillance 3.1.3. Payment System Sector
application (mobile app) that functions as a platform Transformation
to present more interactive, dynamic and up-to-date
surveillance data and information and support a more Bank Indonesia continued accelerating payment
efficient decision-making process. system digitalisation to strengthen integration of the
national digital economy and finance ecosystem. In line
Bank Indonesia continued strengthening the use of with Indonesia Payment System Blueprint (BSPI) 2025
big data analytics to support SupTech implementation. implementation, initiatives concerning Bank Indonesia
Bank Indonesia has applied SupTech in line with best payment system policy in 2022 were oriented towards
practices, including: (i) developing granular and high four priority areas as follows:
frequency data acquisition for phased surveillance, 1) Regulatory reform, undertaken to foster innovation
(ii) tools to support data analysis and visualisation, and mitigate risk in the payment system industry, as
(iii) high analytical capabilities, including the use of well as to consolidate the national payment system
machine learning algorithms, and (iv) technology industry. Regulatory reform aims to streamline the
infrastructure to collect and manage Big Data. licensing process through activity and risk-based
approaches, while enforcing service standards
Bank Indonesia continued increasing the use of for efficiency and prudence. End-to-end payment
SupTech through the development of several system industry consolidation involves digitalisation
use cases to support stronger supervision. In of the banking sector as well as Payment System
2022, strengthening supervision in the monetary, Infrastructure Operators (PIP) and Payment Service
macroprudential and payment system sectors was Providers (PSP) with e-commerce. Various payment
supported by a number of SupTech use cases as system policies, including pricing policy, are still
follows: oriented towards creating an efficient industry,
a) Sentiment analysis regarding the service quality while maintaining healthy business competition and
of non-bank PSP applications: processing the text supporting the national economic recovery.
data of user reviews for non-bank PSP applications
using machine learning algorithms to complement 2) Development of an integrated, interoperable and
qualitative information concerning potential risk interconnected (3I) retail payment system and
at non-bank PSPs, specifically reputational risk and infrastructure to support the national digital economy
operational risk regarding the quality of payment and finance ecosystem. Bank Indonesia is firmly
system services. committed to the nationally driven modernisation

Arrangement
Launching of Domestic Government Credit Card and QRIS Cross-Border
of retail infrastructure, operating 24/7 in real time Indonesia on 29th August 2022. Moving forward,
through BI-FAST to meet the rapidly developing the domestic government credit card is expected
needs of retail transactions. BI-FAST offers a number to increase the efficiency of (central and regional)
of advantages, including open participation, different government transaction management.
infrastructure options (independent or sharing) and
relatively low transaction costs, thus piquing public 3) Strengthening the application of payment system
interest. BI-FAST transactions have expanded rapidly, standardisation. Bank Indonesia continued expanding
with BI-FAST participants increasing to 106 members, the use of QRIS as the QR national standard in order
representing 87% market share of the national retail to accelerate payment system digitalisation. QRIS
payment system. Digital transfers through BI-FAST are serves as an entry point for MSMEs into the digital
expected to continue tracking an upward trend as each ecosystem, thereby supporting economic and financial
participant expands payment channels, coupled with inclusion. Furthermore, Bank Indonesia continues
onboarding the next batch of participants. Positive BI- to expand cross-border QR code cooperation. In
FAST performance demonstrates that BSPI 2025 can 2022, Bank Indonesia entered a cross-border QRIS
effectively support industry consolidation and end- cooperation agreement with the Bank of Thailand
to-end integration of the national digital economy and (BoT), while continuing to pilot and develop cross-
finance, while creating a fast, convenient, affordable, border QRIS linkages with Malaysia and Singapore.
secure and reliable (CEMUMUAH) payment system. In addition to QRIS, SNAP implementation was
strengthened with the involvement of market leaders
The development of 3I payment system infrastructure to accelerate development of the digital economy
was also strengthened through policy synergy with and finance ecosystem. SNAP expansion is expected
the (central and regional) Government, banking sector to strengthen the linkages between bank and non-
and industry associations to nurture innovation as bank PSP and maintain a level playing field among all
well as integration of the digital economy and finance. players, thus reducing fragmentation and accelerating
Synergy between Bank Indonesia, the Government the digital economy and finance in Indonesia.
and HIMBARA banks was also realised through
issuance of the domestic government credit card 4) Digital Rupiah. Bank Indonesia continued
using the QRIS mechanism based on sources of credit developing the digital Rupiah as the only legal
funds, launched by the President of the Republic of digital payment instrument in Indonesia for

various digital economic and financial transactions. regional cash depots and one central cash depot.
Bank Indonesia is developing the digital rupiah Through the use of ABFPS, Bank Indonesia has
to strengthen integration of the national digital integrated rupiah currency management end-to-
economy and finance ecosystem. In 2022, Bank end, thereby improving HR efficiency and increasing
Indonesia published a white paper, entitled Project throughput. ABFPS has been applied to one cash
Garuda, containing the rationale, high-level design work unit with FO functions and one work unit with
and roadmap for Bank Indonesia to develop the BO functions.
digital rupiah in phases. This national initiative
is implemented in synergy with government Bank Indonesia has also implemented serial number
ministries, industry players, the global central reading (SNR) in its banknote sorting machines to
banking community and international organisations detect and recognise counterfeit Rupiah banknotes
to ensure that the design is aligned with various processed by Bank Indonesia. This is in line with
interoperability initiatives, including cross-border BI efforts to prevent and eradicate the circulation
transactions. of counterfeit Rupiah banknotes. Through SNR
implementation, Bank Indonesia has increased the
Bank Indonesia also continued the transformation of capabilities of banknote sorting machines to detect
Rupiah currency management as follows: and recognise counterfeit Rupiah notes. In addition,
SNR implementation also enriches the evaluations
1) Digitalisation across all stages of rupiah performed by Bank Indonesia concerning the cash
currency management. End-to-end digitalisation lifecycle for rupiah until the currency is declared
encompasses aspects of the information systems unfit for circulation and destroyed. In 2022, SNR
and infrastructure associated with rupiah currency was used in 24 cash work units.
management. Digitalisation aims to create
fully automated and integrated rupiah currency In terms of the information systems, Bank Indonesia
management activities through the principle of less has expanded the scope of digitalisation in the
human intervention. Rupiah currency planning process through the use
of the Integrated Rupiah Currency Demand and
Bank Indonesia implemented the digitalisation Analytics Application (AKURAT). This is an extension
of rupiah currency management infrastructure of the core banking system (CBS) and e-licensing
across all work units with a cash function by taking application implemented in 2021. AKURAT is used
into account the needs and conditions of currency by Bank Indonesia to support efficient business
processing in accordance with the FOMOBO processes when estimating demand for different
concept. In 2022, Bank Indonesia undertook denominations of currency by region in Indonesia
the phased implementation of a Warehouse based on a decomposition approach
Management System using a Racking System
(WMS-RS) as part of the digitalisation program
for currency storage infrastructure across five .2) Implementation of sustainable Rupiah currency
work units with front office (FO) functions and one management policy. Bank Indonesia also
Regional Cash Depot (DKW) with back office (BO) implemented various sustainable policies to provide
functions. In total, Bank Indonesia has implemented quality and trusted Rupiah currency in harmony with
WMS-RS in 10 cash work units with FO functions SDG values in terms of using resources efficiently
and one regional cash depot with BO functions. to minimise any negative environmental impact.
In terms of rupiah planning and printing, Bank
In terms of currency management infrastructure, Indonesia strengthened the specification of raw
Bank Indonesia in 2022 pioneered the use of an materials and applied the latest printing techniques
Automatic Banknote Feeding and Packaging System to produce durable Rupiah banknotes with a
(ABFPS) in the banknote sorting machine at two longer circulation lifecycle. Regarding currency

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management and circulation, Bank Indonesia uses for various financial products. The guidelines are
processing machines that consume less energy as expected to increase the understanding of market
well as vehicles with lower carbon emissions. players and other stakeholders concerning the
Rupiah benchmark rate reform process and its direct
Bank Indonesia has also initiated rupiah banknote use for various financial products. This is a concrete
waste management practices as a source of renewable measure by the NWGBR, as a representative of
energy in line with government policy concerning the financial market authorities and actors, in terms
energy transition and reducing carbon emissions. of initiating, preparing and overseeing the rupiah
Currently, banknote waste from Bank Indonesia Head reference rate reform, thereby facilitating a smooth
Office is used as a source of energy for a waste-to- transition in the global benchmark reform initiative.
energy plant located in West Java.
Bank Indonesia issued Board of Governors
3.1.4 Transformation of Main Regulation (PADG) Number 24/18/PADG/2022, as
Supporting Policies an amendment to Board of Governors Regulation
(PADG) Number 20/19/PADG/2018 concerning
1) Rupiah Benchmark Rate Reform the Indonesia Overnight Index Average and
Bank Indonesia continued transformation of Jakarta Interbank Offered Rate, to complement
the money market and foreign exchange market the guidelines published by the NWGBR. The
to provide interconnected, interoperable and new regulation demonstrates Bank Indonesia’s
integrated (3I) infrastructure that is secure and commitment to Rupiah benchmark rate reform in
reliable. In 2022, Bank Indonesia collaborated in the domestic financial markets, while simultaneously
synergy with government ministries, authorities affirming Bank Indonesia’s role as administrator in the
and relevant associations to implement Rupiah publication of IndONIA, Compounded IndONIA, and
benchmark rate reform and develop central the IndONIA Index. The regulations require market
counterparties (CCP) for interest rate and exchange players to begin using IndONIA and Compounded
rate transactions (CCP SBNT). IndONIA as benchmark rates when issuing financial
instruments and/or transactions. The regulations
also clarify sources of data, calculation methods,
Under the umbrella of the National Working Group
maturities and publication times, while providing
on Benchmark Reform (NWGBR), Bank Indonesia,
example calculations using IndONIA by market
the Ministry of Finance, OJK and the Indonesian
actors. The benchmark rate reform aims to increase
Foreign Exchange Market Committee (IFEMC)
the integrity of Rupiah reference rates, thus
continued rupiah benchmark rate reform in the
supporting the financial market deepening process,
domestic financial markets. In March 2022, the
monetary policy transmission effectiveness and
NWGBR published Guidelines for Strengthening
stability of the financial system.
Rupiah Benchmark Rates in Domestic Financial
Markets. The guidelines establish IndONIA as the
Bank Indonesia also continued the process of
Rupiah overnight reference rate as the basis for
establishing and developing central counterparties
forming Rupiah reference rates for non-overnight
(CCP) for interest rate and exchange rate
tenors from 1 week to 12 months.
transactions (CCP SBNT) in line with its commitment
to meet the mandate of the G20 OTC Derivatives
In September 2022, the NWGBR published
Market Reforms and implementation of the Money
Guidelines on the use of IndONIA as the Rupiah
Market Development Blueprint (BPPU) 2025. In
Reference Rate for Various Financial Products
2022, Bank Indonesia strengthened coordination
as a technical guide for the previous publication.
with the authorities and industry associations to
The guidelines contain clarification concerning
accelerate the establishment of CCP institutions in
the recommended choice of Rupiah reference rate
the 3I money market and foreign exchange market.
based on IndONIA, along with use case examples
Coordination aimed to ensure technical and non-

technical readiness. Furthermore, coordination and other relevant authorities must implement
amongst the relevant authorities is critical to ensure transformation in the sharia economy and finance
regulatory support and guarantee the operational ecosystem in pursuit of those goals.
sustainability of CCP as systemically important
financial market infrastructures (FMIs). In synergy with the Government, Bank Indonesia
implemented policy transformation by issuing
CCP SBNT development in Indonesia will reduce Inclusive Bank Indonesia Sukuk (SukBI) in accordance
market segmentation considering CCP mitigate credit with Board of Governors Regulation (PADG) No.
risk and create efficiency through novation practices, 24/21PADG Intern/2022, as the third amendment
risk management and multilateral netting for to PADG No. 22/50/PADG Intern/2020 concerning
transaction settlement. In addition, greater efficiency the Implementation Guidelines for Open Market
in the money market and foreign exchange market is Operations. Inclusive SukBI are the realisation of
expected to increase the competitiveness of market Bank Indonesia’s commitment to support economic
infrastructure in Indonesia and subsequently increase recovery and nurture inclusive finance. Inclusive
domestic and foreign market player confidence in SukBI offer a comprehensive feature set, which are
terms of transacting in Indonesia. Moving forward, tradable in the secondary market as an alternative
CCP development will be supported by finalising the instrument to manage bank liquidity. Beyond its use as
criteria for CCP members in line with the roadmap for a sharia monetary instrument and for sharia financial
participation in payment system infrastructure and market deepening, Inclusive SukBI can be considered
Bank Indonesia financial market infrastructures. as Inclusive Financing Security (SBPI) in terms of
meeting the RPIM target. In 2022, Bank Indonesia
2) Development of the Sharia Economy and Finance issued Inclusive SukBI to the tune of Rp2 trillion.
through Issuance of Inclusive Bank Indonesia Sukuk
(SukBI) and Sharia-Compliant Hedging Instruments Bank Indonesia also continued developing hedging
The sharia economy and finance have massive instruments in the form of sharia hedging swaps
potential to create inclusive and sustainable national with Bank Indonesia as part of the money market
economic growth. Bank Indonesia, the Government transformation. This is in line with efforts to create
2012 2016 2019 2020 2022
• Bank Indonesia’s participation as

a member of the Comprehensive
• Adoption of sustainable and Corporate Reporting Task Force,
Initiation of responsible investment in • Research and studies Institute of Indonesian Chartered
Bank Indonesia reserve asset management into the green Accountants (IAI)
Adoption of economy and finance • Green curriculum in employee
green building • Initiation of green work
Bank Indonesia • Utilising banknote learning program, including employee
development culture program, including
green building waste as a source of self-learning module
at the environmental awareness
standards energy for a waste- • Green culture as a theme of the work
representative initiatives (for instance the
culture program in 2022, including the
office in Solo plastic-free movement, to-energy plant
eco-happiness program
paperless office works) • Dedicated to the Country program to
support the green economy
Figure 01. Bank Indonesia Green Institution Initiative as of 2022

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ideal financial market conditions, namely a liquid, management, (ii) synergy in the development of
efficient and transparent market with integrity. standard cost methodologies as part of performance-
This instrument is regulated in accordance with based budgeting, and (iii) strengthening the employee
Bank Indonesia Regulation (PBI) Number 24/20/ value proposition (EVP) to increase HR productivity.
PBO/2022 concerning Sharia Hedging Swaps with Meanwhile, the control function focused on: (i)
Bank Indonesia. The instrument aims to increase strengthening risk management and the internal
foreign exchange transactions by sharia banks and audit, and (ii) strengthening the legal mandate of
support efforts to maintain exchange rate stability Bank Indonesia in line with the goals, duties and
through currency risk management and sharia authority of Bank Indonesia as mandated in prevailing
financial market deepening. laws and regulations, including through the active
contribution of Bank Indonesia in formulating the
3.2. Organisational and Business draft bill concerning Financial Sector Development
Process Transformation and Strengthening (RUU P2SK).
Organisational and business process transformation was Bank Indonesia also strengthened its institutional policy
continued to create a credible organisation based on mix by enhancing the integration of four strategic Bank
effective, efficient, and compliance (2EC) performance,and Indonesia functions, namely strategic management,
support good and professional governance. The financial management, risk management and internal
organisational transformation of Bank Indonesia was audit functions. Integration was strengthened in
implemented through a number of initiatives, as follows: the medium-term and annual strategic planning
processes by determining risk-based work programs
1) Institutional Policy Mix Framework (BKK) and aligning work programs with resource allocation.
Bank Indonesia continued strengthening the Meanwhile, integration was also strengthened in
institutional policy mix framework (BKK) based on 2EC terms of implementing 2EC performance assessments
to ensure optimal achievement of the Bank Indonesia’s to support the formulation of institutional policy mix
mandate. This was achieved through effective recommendations at the quarterly Board of Governors
performance by nurturing the efficient productivity meeting. In 2022, strengthening focused on the area
of resources, while ensuring legal compliance and of effective performance by measuring the effective
accountability through good and professional correlation of performance indicators and business
governance. Implementation of the BKK framework processes, as well as the assessment of achieving
and 2EC performance assessments are an evolving performance targets based on forward-looking
process applied gradually in line with the development risk assessments. In addition, integration was also
stage of the methodology as well as development of an strengthened to support the business processes and
integrated data centre and information systems. good governance of strategic projects.
In 2022, strengthening BKK-based 2EC was supported BKK framework implementation was also strengthened
by institutional policy with a focus on synergy in by the implementation of Bank Indonesia’s green
the strategic management, resource management institution as the embodiment of leading by example in
and control functions. In the area of strategic terms of implementing green policies in the execution of
management, the focus on strengthening aimed to Bank Indonesia’s duties and functions. Fundamentally,
achieve performance targets effectively through: (i) the Bank Indonesia green institution initiative began
work program planning and control in line with risk in 2012 and has subsequently been strengthened
assessments and audits, and (ii) strengthening the through various work programs in different areas. In
relationship between outcome, output and process. 2022, the implementation focus covered the areas of
Focus in the area of resource management and to work facilities and infrastructure, financial portfolios,
achieve performance targets effectively through: human resources and work culture, as well as the
(i) development of various digital innovations to Bank Indonesia Dedicated to the Country program
support business process re-engineering and strategic as follows:

a) Adoption of green building standards, to increase on that study, Bank Indonesia developed the Bank
energy efficiency and apply green initiatives, Indonesia Green Institution Framework for gradual
accompanied by the application of Bank Indonesia’s implementation based on several internal and
building standards based on green principles, external factors, including the readiness of relevant
which includes the use of solar panels, waste industries/sectors, as well as government programs,
management facilities, green open spaces and standards and policies.
building automation systems.
b) Adoption of green principles in financial 2) Strengthening Decision-Making in line with
management, as applied since 2019 through Business Process Re-Engineering
the application of sustainable and responsible Bank Indonesia implemented regulatory reform
investment principles for the reserve asset in terms of BI-wide decision-making to support
portfolio. Bank Indonesia invests in green bonds, a comprehensive, end-to-end and streamlined
social bonds and sustainability bonds in accordance decision-making process in line with business process
with reserve asset management principles, namely re-engineering. This was done to support robust
security, liquidity and profitability. decision-making governance.
c) Green HR and work culture development, through
the implementation of various green work culture Regulatory reform has been achieved, among others,
programs. In 2022, work culture implementation by establishing eight committees in Bank Indonesia and
was strengthened by finalising the green culture standardising the decision-making process at the Bank
aspect as one of the change themes in the 2022 Indonesia level, as decided at a Board of Governors
work culture program. The development of (RDG) meeting. High-level decision-making comprises
employee capacity in terms of sustainability issues three stages as follows: (i) initiation and verification
and climate change was also strengthened through at the work unit level, (ii) recommendations through
the green curriculum as part of the employee various committees, and (iii) decision-making at the
learning program. In addition, Bank Indonesia also RDG meeting. The new committees are responsible
actively participated in various public discussions for checks and balances in the decision-making process
and educational activities on green aspects. in accordance with the purview of each respective
d) Bank Indonesia Dedicated to the Country program to committee. In addition, for decisions not taken through
support the green economy. This program is devoted the RDG meeting, work units are responsible for
to increasing production and environmental quality, initiation and verification as well as recommendations
thus reducing the harmful impact of climate change. of the material substance to be approved by The
The types of assistance provided include facilities/ Members of the Board of Governors. Regulatory
infrastructure for sustainable farming, waste reform and the decision-making process are in line with
management, leveraging renewable energy and the business process re-engineering based on the following
circular economy. Strengthening the Bank Indonesia principles: (i) process simplification by delayering the
green institution initiative, Bank Indonesia in 2022 decision-making process and efficiency through ‘one
conducted the Bank Indonesia Green Institution input, one process, multi-processes’, (ii) maintained
Review. This study was performed to explore good governance, (iii) document standardisation, (iv) end-to-
institutional practices for green central banking end digitalisation of integrated collaboration platforms
in order to support formulation of a systematic, focusing on security and the user experience, and (v)
comprehensive and integrated Bank Indonesia phased implementation.
Green Institution framework and strategy. The
Bank Indonesia Green Institution Review focused In line with the regulatory reform and BI-wide
on four key areas, namely: (i) strategic management decision-making process, Bank Indonesia developed
and governance, (ii) internal finance, (iii) facilities the Digital Workplace application. Digital Workplace
and infrastructure, and (iv) human resources. Based integrates the workspaces, documents, meeting

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management, and discussion process by the parties environmental management. In 2022, Bank Indonesia
involved in terms of work assignments, complemented prepared for KOPERBI development by dividing the
with access rights management. area into plots ready for construction. Bank Indonesia
regularly coordinates with the Capital City Authority
Business process re-engineering for the decision- and Government to ensure alignment with the
making process will be implemented in stages through government plan/roadmap and the smooth execution
a series of pilots. The piloting mechanism supports of Bank Indonesia duties during the relocation process.
employee change management and continuous
improvement based on an evaluation of the previous 3.3 Human Resources and Work
phase. Culture Transformation
3) Preparations for Relocation of New Capital City to Bank Indonesia continued HR transformation to
Support Government Programs strengthen performance and productivity in the digital
Bank Indonesia is acting on Government Regulation era. In 2022, Bank Indonesia implemented the following
No. 63 of 2022, as one of the government ministries/ measures:
agencies earmarked for relocation to the new capital 1) Strengthening the Employee Value Proposition
city in the first phase. To that end, Bank Indonesia (EVP) in accordance with the organisational strategy.
continued preparations for the relocation by Strengthening the EVP aims to attract, motivate and
strengthening the organisation function, preparing retain the best talent. The EVP was strengthened in line
human resources and developing the new Bank with the changing demographics of human resources
Indonesia Office Complex (KOPERBI). at Bank Indonesia, dominated by Millennials and Gen
Z, the ongoing talent war for human resources with
Bank Indonesia is preparing a plan to transfer special skills, and efforts to build productive human
the functions and relocate employees to the new resources according to the organisational strategy. In
capital city. The plan is being compiled in line with 2022, Bank Indonesia formulated a new EVP based
the identification of central banking functions on “Aku” Bangga BI Bermakna, which is expected to
essential for the new capital city. In principle, the induce change in the meaning of work in terms of work
relocation of human resources to the new capital patterns/methods, values/how to interpret work,
will be in accordance with the timeline prepared by as well as aspects that motivate, engage and create
the Government based on the availability of basic loyalty to the organisation. These goals have been
infrastructure. translated into the three main pillars of EVP, namely
leadership, family and welfare.
In accordance with the ‘Future Smart Forest City of
Indonesia’ concept developed by the Government,
the new Bank Indonesia Office Complex (KOPERBI) 2) Developing supporting infrastructure for digital
was designed as a smart city, integrated and living in human capital management. In line with the faster
synergy and harmony with the indigenous flora and adaptation of digital technology in the business
fauna of Kalimantan. KOPERBI development is in line processes, HR management is also oriented towards
with the guiding principles that combine the vision of leveraging digital technology. In 2022, Bank Indonesia
urban design planning of the core government district developed use cases for potential employee groups
with the Bank Indonesia Office Complex Master Plan (KPP) and person-to-job fit (P2JF), which have
(RIKOPERBI), while meeting Green Building Council been used in the internal mapping process as a
standards/criteria as follows: (i) appropriate site consideration when repositioning employees. The
development, (ii) energy efficiency and conservation, implementation of use cases for KPP and P2JF will be
(iii) water conservation, (iv) indoor health and comfort, honed to support the use of big data and data analytics
(v) material resources and cycle, and (vi) building in the HR management area.

3.4. Digital Transformation
G20 Techsprint Initiative 2022: The Launching of TechSprint Central Bank Digital Currency
Digital transformation is implemented in harmony with the development of various content and data services,
the other aspects of transformation to achieve synergy analytical tools to support the decision-making
in the accomplishment of the vision and mission of process, data analysis infrastructure as well as data
Bank Indonesia as the foremost digital central bank. In literacy competencies.
2022, Bank Indonesia prepared a digital transformation c) The development of digital infrastructure, which
strategy framework, namely the Bank Indonesia Digital aims to increase information system infrastructure
Innovation Master Plan (RIVIBI), after re-looking at the capabilities and capacity as well as security through
Bank Indonesia Information System Master Plan (RISIBI). the development of agile, resilient and intelligent
RIVIBI contains the digital transformation strategy of Bank infrastructure, including digital workplace
Indonesia, focusing on three main strategies as follows: infrastructure to support hybrid working, the
a) The development of digital business platforms to development of integrated IS security infrastructure
support policies and institutional arrangements, which based on data analysis and the availability of
aim to realise digitalisation of the payment system innovative sandboxing infrastructure.
business platform and financial market infrastructures
(FMI) in accordance with the Indonesia Payment In more detail, the implementation of each main strategy
System Blueprint (BSPI) 2025 and Money Market of digital transformation is as follows:
Development Blueprint (BPPU) 2025, as well as the
availability of the business process re-engineering 1) Development of a Digital Business Platform to
digitalisation platform. This strategy is implemented Support Policies and Institutional Arrangements
through various initiatives, including development In line with ongoing digitalisation of the payment
of 3I payment system infrastructure and FMIs, the system (PS) and financial market infrastructures
development of digital process re-engineering and (FMIs) towards BSPI and BPPU implementation,
hybrid working platforms, as well as the development Bank Indonesia is also focused on the digitalisation
of information systems supporting the digitalisation of business process re-engineering (BPR) and
of business processes, policies and other institutional restructuring the decision-making process (DMP). In
arrangements. terms of the PS and FMIs, Bank Indonesia is currently
b) The development of omni data intelligence, which piloting BI-FAST development in the form of bulk
aims to create a data-driven institution to support the payments, direct debits and requests for payment.
decision-making process at Bank Indonesia through In addition, Bank Indonesia is also preparing for

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3I standards (integration, interconnection and including the use of BI-FAST data and Integrated
interoperability) as well as the design process for Commercial Bank Report (LBUT) data for Bank
3I Converter development. Furthermore, Bank Indonesia policy assessment/analysis purposes, as
Indonesia continues exploring the Digital Rupiah, well as sentiment analysis, reviewing the service
which has entered the phase of preparing procurement quality of non-bank PSP applications using machine
documents for proof-of-concept activities earmarked learning and utilising daily piloting data indicators
to begin in 2023. of electronic money for non-bank PSP oversight.
In addition, Bank Indonesia has also completed
Bank Indonesia is restructuring BPR and DMP to increase the development of use case analytics in the
the efficiency and effectiveness of Bank Indonesia’s institutional sector in relation to the development
task implementation. The digitalisation process began of analytic apps for HR management.
by harmonising the people, processes and technology
aspects. In terms of technology, the development of 3) Development of Resilient Digital Infrastructure
digital platforms to support BPR and DMP focuses on Bank Indonesia continued the development of agile,
two components, namely the main DMP to support the reliable and secure digital infrastructure to provide
decision-making process by the Board of Governors and solid foundational support for the development of
the supporting DMP for the decision-making process at two other main strategies, namely the digital business
the work unit level in Bank Indonesia. platform and Data Centre. The development of
technology infrastructure and security at Bank
In 2022, Bank Indonesia completed the preliminary Indonesia has five main components as follows:
development stage of a Digital Workplace to support a) End user devices, through the adoption of
the Board of Governors Meeting (RDG). At this initial technology that can support mobility in line with
stage, the main function of the Digital Workplace is emerging working trends in the digital era to
document management. Moving forward, the Digital optimise more effective and efficient employee
Workplace will focus on DMP development at the work processes.
work unit level by standardising the presentation b) Networks, through the adoption of various
material for the Board of Governors meeting, while software-defined technologies, which are expected
utilising the post-RDG management assignment to increase end-to-end interconnectivity and
function to monitor any follow-up actions. network management.
c) 3 Data Centres, through the expansion and
2) Data Centre Development optimisation of the Bank Indonesia data centre,
Bank Indonesia continued development of the Data which is expected to create flexible infrastructure
Centre to integrate all main policy and institutional to accommodate the business needs of Bank
data towards realising Bank Indonesia as a data- Indonesia and support efficient and optimal
driven institution with advanced analytics capabilities. operations.
In 2022, Data Centre development achieved the d) Cloud, through an adaptive and phased approach,
following milestones: which is expected to accelerate Bank Indonesia
a) First-phase development of chart packs containing innovation.
standard graphs and tables illustrating the f) Security, by continuously increasing cybersecurity
performance of monetary sector and FSS indicators capabilities and capacity in anticipation and
to support digitalisation of the main policymaking mitigation of emerging cyber risks.
process.
b) Finalising metadata to support the development of In 2022, Bank Indonesia adopted the latest technology
use cases concerning the digitalisation of monetary tools and devices to increase IS productivity and
RDG and banking industry FSS content in the efficiency as well as security, including collaboration tools
main policy sector. Bank Indonesia also finalised to support productivity, while strengthening networks in
metadata for rupiah currency management and HR the data centre and modernising meeting room devices
management. to maximise hybrid working trends. Bank Indonesia will
c) Developing several use case analytics in the continue strengthening all five components to create
main policy sector, which have been leveraged resilient digital infrastructure in the Bank Indonesia
in real terms for policymaking and supervision, environment.

Kata Pengantar Prospek dan Tantangan Respons Kebijakan Transformasi Kelembagaan
04
BANK INDONESIA'S
PERFORMANCE IN
2022

48
Capaiann Kinerja Anggaran Tahunan Lampiran

49
BANK INDONESIA'S
PERFORMANCE IN 2022
D
espite a backdrop of onerous challenges blighting 2022, through
its main policy mix, Bank Indonesia successfully maintained solid
economic performance, supported by institutional credibility through
institutional policy mix. Solid performance was reflected in the Key Performance
Indicators (KPI) associated with 12 Strategic Programs (SP), which surpassed all
corresponding targets in 2022.
Bank Indonesia's commitment to maintaining credibility was also realised

through various institutional achievements. Bank Indonesia effectively
maintained governance maturity at the highest level. Furthermore, Bank
Indonesia earned the distinction as an Informative Public Body by fulfilling
its commitment to public information transparency. Bank Indonesia has also
maintained an unqualified opinion for the Annual Financial Statements for 20
consecutive years from the Audit Board of the Republic of Indonesia (BPK-RI)
as the embodiment of good governance and consistency in financial
management.

Bank Indonesia's Bank Indonesia Appendix
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The National Movement for Food Inflation Control (GNPIP) Kick-off
Bank Indonesia has consistently performed with The performance of 41 KPIs across 12 Strategic Programs
excellence each year. Performance excellence is (SP) were as follows:
reflected in the Key Performance Indicators (KPI) of
12 Strategic Programs (SP), all of which exceeded their 4.1 SP 01 - Strengthening monetary
respective targets in 2022. This supports institutional policy and BI policy mix effectiveness
credibility, as demonstrated by the success of the main to achieve rupiah stability, based on 5
policy mix in maintaining economic performance despite KPIs as follows:
a backdrop of arduous international and domestic
economic challenges. 1) Low and stable inflation by managing core inflation
to achieve the Consumer Price Index (CPI) target of
Bank Indonesia policy credibility in terms of maintaining 3.0%±1% (yoy)
national economic stability received external stakeholder Low core inflation was maintained in 2022 at 3.36%
recognition, as reflected by: (i) positive stakeholder (yoy). This was inextricably linked to the Bank
perception concerning monetary, macroprudential Indonesia monetary policy response and close policy
and payment system policy credibility, (ii) positive synergy with the Government to maintain inflation
international stakeholder perception (rating agencies and stability against a build-up of external pressures and
international organisations), with Indonesia successfully increasing intensity of global uncertainty.
maintaining investment grade status from three major
international rating agencies, with the outlook upgraded Bank Indonesia adjusted the BI 7-Day Reverse
to stable, and (iii) positive stakeholder perception in Repo Rate (BI7DRR) as a front-loaded, pre-emptive
terms of positive opinion in the mass media. and forward-looking measure to lower inflation
expectations and maintain core inflation in the

3.0%±1% target corridor. In 2022, Bank Indonesia 2) Strengthening the economic and monetary policy
hiked the BI7DRR policy rate by 200 bps to 5.50%. mix framework to support Bank Indonesia policy
Furthermore, Bank Indonesia also strengthened mix effectiveness by issuing regulations to bolster
monetary operations by raising the interest rate implementation of the economic and monetary
structure of the money market, in accordance with policy mix framework.
the higher BI7DRR, to enhance the effectiveness Bank Indonesia issues regulations concerning its Main
of policy rate transmission to anchor inflation Policy Mix (BKU) as a reference for policymaking at Bank
expectations. In addition, Bank Indonesia also Indonesia. The regulations aim to strengthen the policy
strengthened coordination with the (central and mix framework, which was urgently required to maintain
regional) Government, including the Central and policy mix effectiveness in terms of maintaining stability
Regional Inflation Control Teams (TPIP and TPID), to and nurturing economic growth amid changes in the
implement the National Movement for Food Inflation strategic environment as well as increasingly dynamic
Control (GNPIP) in various regions to control inflation, and complex global and domestic challenges.
particularly the second-round effect of fuel price
adjustments. Strengthening the main policy mix framework is
part of the Bank Indonesia policy transformation.
With consistent monetary policy tightening and The main policy mix integrates three key policies,
policy coordination to manage inflation with the namely monetary policy, payment system policy and
Central and Regional Government (TPIP and TPID) macroprudential policy, underpinned by various
as well as GNPIP, inflation was lower than initially supporting policies as follows: (i) regional economy
projected. CPI inflation in 2022 was recorded at and finance, (ii) international, (iii) central banking
5.51% (yoy), lower than projected headline inflation services, (iv) data and information systems, and (v) the
in several peer countries, including India (5.72%), organisation and governance.
Thailand (5.89%) and South Africa (7.2%), as well as
advanced economies, such as the US (6.5%), Europe Bank Indonesia strengthened its policy mix framework
(9.2%) and the UK (10.5%). Inflation expectations in harmony with the direction of Bank Indonesia’s
also showed early signs of decreasing from 6.5% overarching goal/mandate in accordance with
in September 2022 to 5.5% in December 2022. In deliberations on the Draft Bill on Development and
2023, Bank Indonesia monetary policy will focus on Strengthening of the Financial Sector (RUU P2SK). In
rupiah stabilisation and managing inflation back to alignment with the P2SK draft bill, the Bank Indonesia
the target corridor sooner as part of the mitigation policy mix framework aims to create and maintain
measures against global contagion. rupiah stability, payment system stability, and financial
system stability towards sustainable economic growth.
The GNPIP Kick-off in North Sumatera

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3) Maintained exchange rate volatility and leveraged cooperation with other central
banks. Bank Indonesia continued optimising
Rupiah stability was maintained against a strong US DNDF transactions, complemented by a rollover
dollar, accompanied by heightened global financial feature, between Bank Indonesia and open market
market uncertainty. Aggressive FFR hikes, a strong operations (OMO) participants as well as between
US dollar, and the high-risk perception of global participants, which ensured the constant availability
investors (cash is king) triggered portfolio investment of hedging instruments, including sharia-compliant
outflows and currency pressures in emerging hedging swap instruments to support exchange
market economies, including Indonesia. At the end rate stability. In addition, in December 2022,
of December 2022, the rupiah stood at Rp15,568 Bank Indonesia released a new foreign exchange
against the US dollar, thereby losing 8.45% in value monetary operation (MO) instrument to repatriate
compared with the level recorded at the end of 2021, the foreign exchange proceeds of exports (DHE),
yet faring relatively better than the depreciation specifically exports of natural resources (SDA), thus
recorded in several other developing economies, strengthening Rupiah stability and the national
including the Philippines (8.50%) and India (10.15%). economic recovery. In addition, in order to boost the
This was linked to Bank Indonesia's consistency in effectiveness of exchange rate stabilisation policy,
terms of monitoring and intervening in the market to Bank Indonesia also strengthened its monitoring
maintain Rupiah stability in line with the currency’s system for foreign exchange transactions against the
fundamental value and market mechanisms, as well as rupiah (SISMONTAVAR) by adopting innovative new
the positive perception of foreign investors regarding technology that can provide more comprehensive
the promising economic outlook for Indonesia. information concerning interbank transactions as well
Positive investor perception was reflected by foreign as transactions between banks and their customers in
portfolio investment inflows to the stock market, real-time in the foreign exchange market.
coupled with lower capital outflows from the SBN
market, particularly since October 2022. Rupiah stabilisation is an essential aspect of crisis
prevention in Indonesia against the impact of global
Bank Indonesia's efforts to stabilise the Rupiah economic turmoil, to avoid the deleterious impact
focused on massive intervention in the domestic of imported inflation and support efforts to manage
foreign exchange market through spot and DNDF inflation, as well as to maintain monetary stability,
transactions, in addition to buying/selling SBN in financial system stability and macroeconomic stability.
the secondary market. Stabilisation measures were
strengthened through innovative policy in the form 4) Adequate foreign exchange reserves in accordance
of a twist operation to increase the attractiveness of with international standards to finance imports and
SBN yields for foreign portfolio investment inflows. service short-term government external debt
This was achieved by buying/selling short-term SBN in
the secondary market to increase the attractiveness The position of reserve assets at the end of
of short-term SBN yields, while maintaining December 2022 stood at USD137.2 billion,
the structure of longer term yields. Supporting equivalent to 6.0 months of imports or 5.9 months
implementation of the twist operation, particularly of imports and servicing short-term government
in terms of selling SBN in the secondary market, Bank external debt, which is well above international
Indonesia strengthened the monetary operations adequacy standards. Furthermore, the position of
strategy by incrementally expanding the SBN series reserve assets was adequate to safeguard external
eligible for sale and refining the pricing formula when resilience in Indonesia. In 2022, Bank Indonesia
selling SBN in the secondary market. employed three main strategies to manage reserve
assets as follows: (i) strengthening reserve asset
As part of the efforts to maintain Rupiah stability, management, primarily by adjusting the goal
Bank Indonesia strengthened monetary controls of reserve asset management that previously
in the foreign exchange market and SBN market, prioritised risk-adjusted returns to focus on

preserved value, (ii) optimising foreign exchange 5) Strengthening the monetary management framework
monetary operations to support adequate reserve integrated with money market deepening to
assets, and (iii) coordinating with the Government, strengthen the effectiveness of monetary policy
specifically the Ministry of Finance, concerning transmission through participant design aspects (using
the plan to issue global bonds as well as projected primary dealers) to strengthen repo transactions
international reserves and demand for foreign
currency liquidity. Bank Indonesia issued recommendations concerning
the design of primary dealers to strengthen repo
Overall, in 2022, Indonesia’s Balance of Payments transactions. This was implemented as part of the
(BOP) recorded a surplus, bolstered by stronger monetary management framework strengthening
export performance that reinforced external initiative, integrated with money market deepening
sector resilience. The current account surplus in to bolster the effectiveness of monetary policy
2022 increased significantly to USD13.2 billion transmission. The strengthening was implemented
(1.0% of GDP) from USD3.5 billion (0.3% of in line with other relevant policies, the readiness of
GDP) in 2021. This was primarily attributable supporting infrastructure and integration with other
to an uptick of exports in line with persistently participants at Bank Indonesia, including the payment
high international commodity prices and strong system managed by Bank Indonesia and appointed
demand for Indonesian commodities, despite cross-currency dealers (ACCD).
higher imports to fuel the domestic economic
recovery. Meanwhile, the capital and financial 4.2 SP 02 - Strengthening Bank
account in 2022 recorded an USD8.9 billion deficit Indonesia policy synergy with the
given elevated global financial market uncertainty. fiscal policy and structural reforms of
Consequently, the overall BOP in 2022 booked a the Government to foster sustainable
USD4.0 billion surplus, after recording a USD13.5
economic growth, based on 2 KPIs as
billion surplus in the previous year.
follows:
High-Level Coordination Meeting of the Joint Secretariat on Acceleration of Tourism Sector Development in 2022

Arrangement
6) Bank Indonesia policy synergy with the Government Bank Indonesia also strengthened policy synergy with
to manage national inflation and foster sustainable the Government and relevant authorities to bolster
economic growth through arrangements between the recovery and reinforce the structure of the
Bank Indonesia and relevant government ministries manufacturing and tourism industries. The High-Level
and agencies, as well as follow-up actions on previous Coordination Meeting on Manufacturing produced
agreements 11 strategic measures. Meanwhile, the High-Level
Meeting of the Joint Secretariat on Accelerating
Bank Indonesia consistently and continuously Tourism Sector Development (Sekber Pariwisata)
strengthens policy synergy and coordination with agreed 10 strategic measures. Follow-up actions
Central and Regional Government and other strategic are expected to support economic development,
partners to achieve manageable inflation. Among accelerate structural reforms and strengthen external
others, coordination between Bank Indonesia and resilience, particularly in terms of expediting the
the Government is implemented through high-level national economic recovery.
meetings (HLM) within the TPIP forum, which has
resulted five strategic agreements relating to policy 7) Monetary and fiscal policy synergy between Bank
coordination, mitigating the impact of upside risks, Indonesia and the Government by conveying various
managing volatile food prices, strengthening policy BI considerations to the Government concerning the
communication synergy, and strengthening Central State Revenue and Expenditure Budget (APBN), SBN
and Regional Government coordination. issuance/management, financing support for the
national economic recovery and commercial foreign
Bank Indonesia policy synergy with TPIP was also loans
strengthened through the National Coordination
Meeting (Rakornas) on Inflation Control, themed Fiscal and monetary coordination was strengthened
“Synergy for Price Stabilisation and National Food regularly in terms of driving the national economic
Security”, attended by the President of the Republic recovery and maintaining stability, including Bank
of Indonesia. The instructions of the President to Indonesia's participation in funding the State Budget
maintain price stability and increase food security (APBN). In line with implementing the Joint Decree
were followed up through synergy and extra efforts (KB) between Bank Indonesia and the Ministry of
in terms of program innovation, including the National Finance, Bank Indonesia continued buying SBN in the
Movement for Food Inflation Control (GNPIP). primary market to fund the national economic recovery
GNPIP is a joint commitment to optimise inflation program and finance the health and humanitarian
control referring to the 4K framework, namely supply aspects of handling the Covid-19 pandemic. Overall,
availability, price affordability, smooth distribution, in 2022, Bank Indonesia purchased SBN to the tune
and effective communication. GNPIP focuses of Rp273.11 trillion, consisting of KB I totalling
on expanding inter-regional cooperation (KAD), Rp49.11 trillion and KB III totalling Rp224 trillion.
facilitating distribution, replicating cluster business The Government also raised the subsidy allocation
models, the food crop movement, and organising and energy compensation fund from Rp152.5 trillion
community markets in different regions of Indonesia. to Rp502.4 trillion in 2022. This was done to maintain
Furthermore, central and regional coordination was price stability and mitigate the impact of higher global
also strengthened as a follow-up action to the National oil prices on inflation and public purchasing power. In
Coordination Meeting (Rakornas) on Inflation Control 2022, Bank Indonesia conveyed various inputs and
through implementation of the Central and Regional coordination materials relating to the State Budget,
Coordination Meeting (Rakorpusda) on Inflation issuing/managing SBN, as well as financing support
Control 2022 in synergy with relevant government for the national economic recovery and commercial
ministries/agencies. foreign loans.

Casual Talks on Building A Resilient Sustainable Finance
4.3 SP 03 - Strengthening and other macroprudential incentives. Furthermore,

macroprudential policy and financial system resilience was also maintained at
a high level, as reflected by a ratio of liquid assets to
surveillance to revive intermediation,
third-party funds of 31.2% in December 2022, well
bolster financial system resilience
above the pre-pandemic average of 21%. Capital
as well as strengthen financial and
resilience was also reflected by a Capital Adequacy
economic inclusion and consumer Ratio (CAR) of 25.63%.
protection in order to maintain
financial system stability, based on 3 A revival of the bank intermediation function was
KPIs as follows: facilitated by Bank Indonesia policy to provide
macroprudential incentives for banks disbursing
8) Macroprudential policy to support economic funds to specific and inclusive economic sectors. The
financing with a Macroprudential Intermediation incentives were provided in the form of looser average
Ratio (MIR) in the 84-94% range rupiah reserve requirements for banks disbursing
loans or financing to priority sectors and/or fulfilling
Bank Indonesia continued strengthening the Macroprudential Inclusive Financing Ratio (RPIM).
accommodative macroprudential policy in synergy As of 1st March 2022, the incentive was provided up
with KSSK policy to revive lending/financing to to a maximum of 100bps, comprising up to 50bps for
businesses and support the national economic priority sectors and 50bps for meeting the RPIM ratio.
recovery. As of December 2022, credit growth was Seeking to boost the effectiveness and multiplier effect
recorded at 11.35% (yoy), up significantly from 5.24% of this policy, on 1st September 2022 Bank Indonesia
(yoy) in the previous year. Broad-based credit growth refined the policy by expanding the scope of priority
was supported by increases recorded across nearly all sectors from 38 to 46, and raising the incentive for
loan types and economic sectors. The intermediation priority sectors to 150bps from 50bps.
function also recovered in the sharia banking
industry and the MSME segment, predominantly Striving to maintain resilience and revive
micro enterprises. This was also supported by the intermediation, Bank Indonesia also held various
Macroprudential Inclusive Financing Ratio (RPIM) other accommodative macroprudential policies as

Arrangement
follows: (i) the Countercyclical Capital Buffer (CCyB) 10) Bank Indonesia policy effectiveness to increase
at 0%, (ii) the Macroprudential Intermediation Ratio economic and financial inclusion based on the
(RIM) at 84-94%, (iii) the Macroprudential Liquidity following targets: (i) 50% of banks meeting the
Buffer (PLM) at 6% with repo flexibility of 6% and Macroprudential Inclusive Financing Ratio (RPIM) as
sharia PLM at 4.5% with repo flexibility of 4.5%, and required by Bank Indonesia, and (ii) the accumulation
(iv) the Loan/Financing-to-Value (LTV/FTV) Ratio of MSMEs resulting from the implementation of
on property loans up to a maximum of 100% and three policy pillars (corporatisation, capacity and
downpayment requirements on automotive loans financing) reaching 1,800 MSMEs
down to a minimum of 0% for purchases of all new
motor vehicles. The accommodative macroprudential Bank Indonesia continued supporting government
policies maintained by Bank Indonesia effectively efforts to increase access to finance and advance
revived bank lending/financing to businesses and MSME development, with the number of banks
strengthened the economic recovery. meeting the RPIM target in accordance with the
Bank Business Plan (RBB) at the end of 2022 reaching
73.81%, or 93 of 126 banks, including conventional
9) Macroprudential surveillance to strengthen financial
commercial banks, sharia banks and sharia business
system resilience by targeting 30 big banks to
units. MSME access to finance was increased from
maintain a minimum aggregate ratio of liquid assets
the supply and demand sides. On the supply side,
to third-party funds (LA/TPF) of 10%
Bank Indonesia: (i) refined RPIM policy to revive
bank financing disbursed to MSMEs and low-income
Financial system resilience, particularly the banking
earners (PBR), while maintaining financial system
industry, was maintained against a backdrop of
stability, and (ii) issued regulations to offer incentives
increasing global financial market uncertainty, which
for banks channelling funds to specific sectors/
intensified pressures on the domestic economy and
segments, including banks exceeding the RPIM
financial markets. In December 2022, liquidity in the
target in accordance with the business plan of each
banking system was maintained on the back of 9.01%
respective bank, which aimed to increase the funds
(yoy) third-party funds (DPK) growth with a solid
available for certain and inclusive economic activities,
liquidity composition, as reflected by an aggregate
while maintaining the stability of the financial system.
ratio of LA/TPF for the 30 big banks of 31.20%, which
is well above the 10% threshold.
On the demand side, the accumulated number of
MSMEs that have successfully implemented the
Macroprudential surveillance was implemented
three policy pillars of corporatisation, capacity,
using the Dynamic Systemic Risk Surveillance (DSRS)
and financing exceeded 2,000. MSME capacity was
approach developed by leveraging SupTech. The DSRS
continually improved through technical mentorship,
approach integrates supervision of the monetary
linkages with large enterprises, financing,
sector, money market and foreign exchange market
promotional support for export activities, and
as well as the payment system and Rupiah currency
digitalisation. Bank Indonesia also strengthened
management under macroprudential surveillance.
the financial management capacity of MSMEs to
DSRS aims to assess bank-led idiosyncratic risk and
ensure bankability through the Financial Information
other potential vulnerabilities in the financial system
Recording Application Information System (SIAPIK)
ecosystem as well as the contagion effect that can
and by optimising the database of MSMEs feasible
emerge in order to evaluate the escalation of systemic
for financing through the Bank Indonesia Data Input
risk in the financial system. Bank Indonesia also
Application System (BISAID). In 2022, more than
maintained surveillance and inspections amid the
27,000 users utilised the SIAPIK application, thereby
emerging challenges of recovering from the Covid-19
successfully creating financing commitments from
pandemic. Hybrid inspections were implemented
formal financial institutions.
either onsite and/or remotely via online platforms.

Opening of Karya Kreatif Indonesia (KKI) 2022
4.4 SP 04 - Strengthening policy wins regarding ministerial policy support in synergy

coordination and synergy as well with the Integrated Policy Package promulgated by
as macroprudential surveillance the Financial System Stability Committee (KSSK).
with relevant authorities to revive
Close policy synergy between the Ministry of Finance,
intermediation, bolster financial
Bank Indonesia, Financial Services Authority (OJK)
system resilience, as well as
and Indonesia Deposit Insurance Corporation (LPS)
strengthen financial and economic under the auspices of the Financial System Stability
inclusion and consumer protection Committee (KSSK) served as the backbone of economic
in order to maintain financial recovery in 2022 and maintained economic stability.
system stability, based on 3 KPIs as Such synergy successfully accelerated the vaccination
follows: rollout in 2022, allowing the Government to relax
restrictions on economic and community activities to
11) Bank Indonesia policy synergy across different support economic growth in 2022. Indonesia achieved
authorities to support economic financing by reaching herd immunity in the second quarter of 2022 in line
agreement/completing coordinated agendas with the rapid vaccination program of the Government,
supported by financing from Bank Indonesia. The
In conjunction with the other members of the policy was supported by strong policy coordination
Financial System Stability Committee (KSSK), Bank and synergy among KSSK members to provide fiscal,
Indonesia agreed the national policy mix to maintain monetary, macroprudential and microprudential
macroeconomic and financial system stability, incentives to priority sectors, while expanding the scope
as well as revive lending/financing to businesses of priority sectors from 38 to 46, which effectively
and priority sectors to support economic growth, accelerated national economic recovery momentum.
exports as well as financial and economic inclusion. Policy coordination and synergy ensured the economic
KSSK agreed: (i) to focus policy incentive support recovery in Indonesia remained intact, with economic
on 46 priority subsectors in order to expedite the growth in 2022 reaching 5.31% (yoy), up significantly
national economic recovery, and (ii) various quick- from 3.70% (yoy) in the previous year.

Arrangement
In 2022, Bank Indonesia was actively involved Intermediation Ratio (RIM), Macroprudential
with other relevant authorities in deliberating Liquidity Buffer (PLM), Macroprudential
the formulation of the P2SK Act. Through the Inclusive Financing Ratio (RPIM), Minimum
deliberations, Bank Indonesia supported various Capital Adequacy Requirements (KPMM),
regulatory refinements to the P2SK Act, which Sharia Rural Banks (BPRS), and Risk-Weighted
had direct and indirect institutional implications Assets (ATMR), (ii) formulation of follow-up
for Bank Indonesia, including in the execution of policy implementation, including the Integrated
duties. Regarding the dimensions of preventing Commercial Bank Report (LBUT), commercial
and resolving financial system issues, the P2SK Act bank consolidation, coordination to implement
focuses on strengthening the mandates of Bank RPIM policy, and coordination in the spin-off
Indonesia, OJK, and LPS, mechanisms for resolving process for sharia business units (UUS), (iii) inter-
bank liquidity and solvency issues, as well as inter- authority data and/or information exchange, and
authority coordination, including strengthening (iv) updating the list of systemic banks.
KSSK coordination and effective decision-making. c) Coordination with the Indonesia Deposit
Furthermore, Bank Indonesia will also be involved Insurance Corporation (LPS) concerning: (i)
in formulating several draft government regulations policy harmonisation and alignment, including
with the relevant authorities as follow-up actions to intermediary bank resolution, (ii) strengthening
promulgation of the P2SK Act. coordination for regular and incidental data/
information exchange, and (iii) knowledge sharing
Bank Indonesia advocates economic and financial and benchmarking task implementation and
inclusion and sustainability to accelerate the authority in terms of policy and institutional
national economic recovery. In collaboration with management.
the Coordinating Ministry for Maritime Affairs d) Tripartite coordination with OJK and LPS
and Investment of the Republic of Indonesia, Bank concerning: (i) the Crisis Simulation Exercise
Indonesia agreed to develop a Green Calculator Asia Pacific-FSI and Chiang Mai Initiative
and to research the transition risks associated with Multilateralisation Test Run, (ii) monitoring
climate change to support sustainable finance. of bank conditions that require attention, (iii)
Furthermore, Bank Indonesia actively contributed coordinated deliberations regarding the P2SK
and participated in various international forums Draft Bill, (iv) coordination mechanism for LPS
regarding sustainable finance, which included co- fund placements at banks, (v) coordination to
chairing the G20 Sustainable Finance Working Group expand LBUT metadata in an integrated reporting
with the Ministry of Finance and preparing the G20 forum, and (vi) joint research on strategic topics,
Sustainable Finance Report 2022. such as assessing the risks posed by the green
economy transition on the macroeconomy and
12) Bank Indonesia policy synergy across different banking sector.
authorities to support financial system resilience by
reaching agreement/completing coordinated agendas 13) Synergy to strengthen economic and financial inclusion
as well as consumer protection with the following
Bank Indonesia reached agreement/coordinated achievement targets: (i) agreement/completion of inter-
agendas with relevant authorities to strengthen authority coordination agendas relating to economic
policy synergy, thereby supporting financial system and financial inclusion as well as consumer protection,
resilience. In 2022, a number of agreements were (ii) education on economic and financial inclusion and
reached, with agendas coordinated and implemented raising consumer literacy, and (iii) increasing turnover and
as follows: business matching by a minimum of 10% on the previous
year in terms of the Karya Kreatif Indonesia (KKI) and
a) Completion of the KSSK coordination agenda Road to KKI activities
by implementing the national thematic crisis
simulation. Bank Indonesia is committed to collaborating in
b) Coordination with OJK concerning: (i) policy synergy with relevant government ministries/
harmonisation and alignment between Bank agencies to strengthen economic and financial
Indonesia and OJK, including Macroprudential inclusion as well as consumer protection as follows:

a) Supporting the achievements of the National namely up 32.16% on the previous year, yet also
Financial Inclusion Strategy (SNKI). In 2022, through digitalisation, such as the innovative digital
Bank Indonesia cooperated with the Secretariat fitting room, as well as utilising QRIS.
of the National Financial Inclusion Council
(SDNKI) to publish the results of the National KKI activities in 2022 included: (i) a physical exhibition
Financial Inclusion Survey 2021, revealing of premium MSME products under the mentorship of
that the level of financial inclusion in Indonesia Bank Indonesia as well as in partnership with Bank
continues tracking an upward trend. In terms of Indonesia and government ministries/agencies,
account ownership, 65.4% of the adult population featuring 203 MSMEs, (ii) business coaching to
owns an account at a formal financial institution, provide business consultation and business clinics for
up 3.7% on the previous year. Meanwhile, in MSMEs and entrepreneurs, organised in synergy with
terms of using formal financial products and government ministries/agencies and industry players
services, 83.6% of the adult population has in relation to facilitating product curation, MSME
access to formal financial products and services. exports, intellectual property rights (HAKI), improving
The National Financial Inclusion Survey 2021 packaging and certification, financial consultation
covered a sample of 7,500 Indonesians across and QRIS registration, consumer protection and
34 provinces based on gender, urban/rural education as well as the SIAPIK application, (iii)
stratification, age, educational background, business matching in terms of financing, attended by
employment field and employment status. 174 MSMEs under the mentorship of Bank Indonesia
b) Supporting the achievements of the National and government ministry/agencies, 4 commercial
Strategy on Corruption Prevention (STRANAS- banks, 8 regional government banks, and 2 non-bank
PK), Bank Indonesia conducted a preliminary financial institutions, and (iv) business matching
survey on Consumer Protection in five provinces in terms of exports, attended by more than 500
of Indonesia, which describes the initial level MSMEs and 5 export aggregators, as well as 109
of consumer knowledge and understanding MSMEs under the mentorship of Bank Indonesia and
regarding the payment system, while government ministry/agencies, 3 export e-commerce
simultaneously supporting implementation of the aggregators and 14 potential buyers from eight
National Consumer Empowerment Index (IKK) countries (US, Singapore, Malaysia, Thailand, Hong
by the Ministry of Trade. The preliminary survey Kong, Japan, Australia and Finland).
showed that 63.76% of Indonesian consumers
were included in the ‘Critical’ category, thereby 4.5 SP 05 - Strengthening payment
playing an active role in striving for their rights system policy and rupiah currency
and obligations. management to accelerate the
c) Expanding the consumer protection education digital economy and finance, while
program is an integral part of the activities to
providing currency fit for circulation
improve consumer literacy. With mobility not
throughout the territory of the
yet fully recovered, Bank Indonesia implemented
Republic of Indonesia, based on 5 KPIs
hybrid and online consumer protection education
programs, which attracted more than 18,000
as follows:
participants.
14) A healthy, competitive and innovative payment
system industry, targeting compliance by Payment
Seeking to boost public demand for MSME products,
Service Providers (PJP) and Payment System
unlock market access and expand access to finance,
Infrastructure Operators (PIP) with operational risk
as well as build MSME capacity, Bank Indonesia
management regulations and capital requirements
organised Karya Kreatif Indonesia (KKI) 2022,
otherwise known as the Indonesian Creative Works
Bank Indonesia maintained a healthy, competitive
Exhibition. KKI 2022 found various novel ways to
and innovative payment system industry throughout
celebrate MSMEs, not only in terms of the value of
2022. Supervision in 2022 revealed no information or
business matching and sales that exceeded the target,

Arrangement
Launching of the 2022 Issue Banknote
reports concerning significant incidental operational reliable Bank Indonesia payment system services
disruptions experienced by PJP and PIP. Supervision in accordance with international standards of
also showed that PJP and PIP were compliant with 99.97%, and (iii) implementation of BI-FAST phase
payment system regulations, particularly in terms 1 and CBS phase 2
of operational risk management. Compliance with
operational risk management regulations is critical Bank Indonesia successfully accelerated payment
to ensure the uninterrupted functioning of payment system digitalisation to strengthen integration of
system operational activities. the national digital economy and finance ecosystem.
By the end of 2022, the adult population's digital
Bank Indonesia also successfully implemented transactions had reached 25.98 billion, well above
regulatory reform, specifically by simplifying and the 17 billion target. The significant increase was
streamlining the licensing approval process in consistent with greater public acceptance and
pursuit of accelerating payment system digitalisation preference for online retail, accompanied by the
to strengthen integration of the national digital expansion of digital payments and acceleration of
economy and finance ecosystem. In 2022, Bank digital banking.
Indonesia processed 47 licence applications and 941
approval applications to develop high, medium and As a Bank Indonesia's initiative to expand digital
low-risk products and/or activities by PSP and PIP. payments, QRIS has demonstrated considerable
success. In 2022, as many as 17.3 million new QRIS
15) Integrated, interconnected and interoperable users were recorded, bringing the total to 27.5 million
payment system infrastructure that is secure QRIS users in Indonesia. In addition, an additional
and reliable, as measured against the following 7.9 million QRIS merchants were also onboarded,
achievement targets: (i) total digital transactions bringing the total to 22.7 million QRIS merchants in
among the adult population reaching a minimum Indonesia. QRIS has emerged as an entry point for
of 17 billion transactions, (ii) availability of MSMEs to the digital ecosystem, thereby supporting

economic and financial inclusion. Meanwhile, consolidation as well as end-to-end integration of

Indonesia has also expanded the use of QRIS cross- the national digital economy and finance ecosystem
border cooperation. In 2022, QRIS cross-border to create and maintain a fast, affordable, convenient,
linkages between Bank Indonesia and the Bank of secure and reliable (CEMUMUAH) payment system.
Thailand (BoT) were established as well as piloting
initiatives with BNM and MAS. Performance excellence, as achieved by the
Bank Indonesia payment system, is supported
Bank Indonesia also performed with excellence in by international management standards. Bank
terms of maintaining the availability of payment Indonesia strengthened and maintained several ISO
system services. In 2022, the availability of predicates as follows:
payment system services provided by Bank a) ISO 9001:2015 relating to Quality Management
Indonesia maintained a 100% reliability rate, with no Systems, maintained since 2016 and relates
operational disruptions recorded. In 2022, average to a broader scope of monitoring participant
daily transaction value and frequency tracked compliance with the National Clearing System
upward trends. Average daily Bank Indonesia (SKNBI), National Blacklist Management Office
payment system and FMI transaction value reached (KPDHN) and Debit Draft Exchange Coordinator
Rp1,522.46 trillion, while the frequency totalled (KPWD).
2.54 million transactions. Increases were reported b) ISO 27001:2013 relating to Information Security
across most infrastructures, particularly driven by Management in the BI-RTGS, BI-SSSS, SKNBI,
the development of BI-FAST services and additional maintained since 2018.
BI-FAST participants throughout 2022. c) ISO 22301:2019 relating to Business Continuity
Management Systems, maintained since
As the realisation of Bank Indonesia's commitment December 2021.
to modernise national-driven retail payment d) Fulfilling the Level I Standards of the Principles
infrastructure, featuring real-time transactions and for Financial Market Infrastructures (PFMIs)
operating 24/7, BI-FAST continued to develop rapidly. in relation to Bank Indonesia Financial Market
The various conveniences afforded by BI-FAST, Infrastructures.
including open participation, different infrastructure
options and relatively affordable transaction costs, Meanwhile, Bank Indonesia’s accomplishments
have increased public interest in the system. BI-FAST are regularly acknowledged by the international
transactions continue to develop rapidly and the community, including Best Conduct of Business
number of participants has increased steadily to reach Regulator in Asia-Pacific from the Asian Banker
106 members, representing an 87% market share of Regulation and Supervision Awards. Bank
the national retail payment system. Furthermore, Indonesia was also recognised for pioneering
since the initial launch at the end of 2022, BI-FAST innovation and regulation in the payment system
has become the dominant preference for members of industry, as well as for the BSPI 2025, which was
the public to transfer funds, with transaction volume considered capable of guiding and navigating the
totalling 646.8 million transactions and transaction payment system industry in Indonesia.
value totalling Rp2,057.5 trillion. Digital transfers via
BI-FAST are forecast to maintain an upward trend in
line with the expansion of payment delivery channels 16) Healthy, efficient and fair market practices in
by each participant, coupled with onboarding the next line with the direction of payment system policy
batch of participants. Solid BI-FAST performance in terms of national digital economy and finance
demonstrates that the Indonesia Payment System integration through policies that support such
Blueprint (BSPI) 2025 can support industry market practices

Arrangement
Bank Indonesia oversees healthy, efficient and fair 17) Development of Wholesale Digital Rupiah as
market practices. Bank Indonesia has developed a Central Bank Digital Currency (CBDC) for interbank
framework and regulatory foundation for pricing fund transfers to support Bank Indonesia's task
policy in the payment system industry. In 2022, Bank implementation, financial system, and national digital
Indonesia issued Board of Governors Regulation economy and finance integration through publication
(PADG) No. 24/7/PADG/2022 concerning Payment of the Digital Rupiah white paper
System Implementation by Payment Service
Providers and Payment System Infrastructure Bank Indonesia launched Project Garuda as an
Operators (PADG PJP PIP), which stipulates pricing umbrella project to explore various architectural
policy for PJP and PIP. design options for the digital rupiah. Project Garuda
contains the rationale and roadmap that will be
Bank Indonesia also continued strengthening pursued to maintain the sovereignty of Digital Rupiah
payment system policies to enhance cost efficiency, currency. Development of the digital rupiah is an
increase local economic activity and facilitate incremental and iterative process that simultaneously
financial transactions to support the economic considers the potential trade-offs between planned
recovery as follows: design features and their implications. The initial stage
a) Extending the pricing policy for SKNBI of Rp1 will begin with wholesale CBDC for the use cases
from Bank Indonesia to the banks and Rp2,900 of issuance, destruction and interbank transfers. In
from the banks to their customers, effective from the second phase, wholesale CBDC will be expanded
1st April 2020 - 30th June 2023. with use cases to support monetary operations and
b) Holding the maximum RTGS charge at Rp30,000 financial market deepening. During the third stage,
from the banks to their customers, effective from end-to-end interactions between wholesale CBDC
1st December 2020. and retail CBBC will be developed. Considering that
c) Extending the reduction in the minimum payment Project Garuda is a national initiative, synergy with
for credit cardholders to 5%, effective from 1st various stakeholders is essential. Beyond the central
May 2020 - 30th June 2023. banking dimension, Project Garuda also has a strong
d) Extending the reduction in late payment penalties national dimension as a collective effort to maintain
for credit cardholders to 1% of the outstanding the sovereignty of the Rupiah.
balance up to a maximum of Rp100,000, effective
from 1st May 2020 - 30th June 2023. 18) Availability of Rupiah currency fit for circulation
e) Holding the maximum interest rate on credit throughout the territory of the Republic of Indonesia
cards at 1.75% per month, effective from 1st July in accordance with public demand based on the
2021. following targets: (i) a soil level of large denomination
f) Extending the 0% Merchant Discount Rate (MDR) banknotes in circulation in the territory of the
for micro enterprises, effective from 1st April Republic of Indonesia in the range of 8-10 and
2020 - 30th June 2023. 6-10 for small denomination banknotes, and (ii)
g) Raising the QRIS transaction limit from Rp5 distribution of rupiah currency in frontier, outermost
million to Rp10 million per transaction, effective and remote (3T) regions through mobile cash services
form 1st March 2022. in a minimum of 150 regions of the Indonesian
h) Raising the value of registered electronic money archipelago
that can be deposited from Rp10 million to Rp20
million per month and the monthly transaction Bank Indonesia successfully maintained the
limit from Rp20 million to Rp40 million per month, availability of Rupiah currency fit for circulation
effective from 1st July 2022. throughout the territory of the Republic of Indonesia.
In 2022, the soil level was maintained on target
with an average level of 10 for large denomination

Memorandum of Undestanding (MoU) Signing between Bank Indonesia and Indonesian Navy (TNI-AL)
banknotes and 8 for small denomination banknotes. Bank Indonesia also strengthened education to
Bank Indonesia also strengthened synergy with the increase literacy and public behaviour when handling
banking industry to provide 87 mobile cash service Rupiah currency, while simultaneously fostering a
points distributed throughout Indonesia to expand national spirit through rupiah currency. In addition
the reach of Rupiah currency fit for circulation. Bank to regular educational activities, Bank Indonesia also
Indonesia also provided mobile cash services at 167 hosted the Indonesia Sovereign Rupiah Festival (FERBI)
points in frontier, outermost and remote (3T) regions from 19th-21st August 2022 as well as the Rupiah and
throughout Indonesia, 81 of which were provided in Heroes Talk (BI Rupawan) on 12th November 2022.
synergy with the Indonesian Navy. Introducing the rupiah as well as Indonesia’s natural
endowments and cultural diversity, as reflected in the
Bank Indonesia also continued innovating to improve rupiah currency, the CBP Rupiah program featured
the quality of Rupiah currency. Bank Indonesia issued various international activities, including the G20
new banknotes in 2022 for seven denominations Presidency series of events, MotoGP Indonesia in
of rupiah currency, namely Rp100,000, Rp50,000, Mandalika, as well as the Indonesia Digital Economy
Rp20,000, Rp10,000, Rp5,000, Rp2,000 and Rp1,000, and Finance Festival (FEKDI).
introduced as legal tender throughout the territory
of the Republic of Indonesia on 17th August 2022. 4.6 SP 06 – Strengthening Bank
The aforementioned 2022 series of rupiah banknotes Indonesia policy synergy with
features three salient innovations: (i) a colourful, government and OJK policy to
sharp, and contrasting colour palette, (ii) strong develop the digital economy and
security elements, and (iii) more durable raw materials
finance, based on 3 KPIs as follows:
to produce beautiful, secure and resilient (INTAN)
rupiah banknotes. Innovation and strengthening the
19) Synergy in terms of transaction electronification
2022 series of Rupiah banknotes made the rupiah
with the following targets: (i) enhancing at least
easier to identify and more difficult to counterfeit,
six regional governments in the digital category, (ii)
while extending the circulation lifespan, leading to
submitting recommendations to prepare the legal
higher quality, trusted Rupiah currency, and a source
basis for social aid program (bansos) digitalisation
of pride as a symbol of Indonesian sovereignty.
trials/pilots, and (iii) expanding the ecosystem

Arrangement
(regions) for transportation sector electronification and regional procurement. In addition, Bank
using chip-based electronic money for ferry Indonesia also expanded ETPD in conjunction
crossings in at least five ASDP regions with regional banks through socialisation and
capacity building activities targeting regional
Bank Indonesia and government synergy to develop governments, preparing a roadmap and work
the digital economy and finance has progressed well plan for regional digitalisation, development as
and exceeded the targets. Various electronification well as monitoring and evaluation of the P2DD
programs have been implemented in conjunction Information System, as well as acknowledging
with the National Working Group to Accelerate and the best P2DD teams through the championship
Expand Local Digitalisation (P2DD). In 2022, the program.
following milestones were achieved:
Bank Indonesia also facilitated cooperation
a) Electronification of social aid program (bansos) between regional governments and e-commerce
disbursements. Cashless and cash funds have been platforms, which included enhancing the
disbursed via the Family Hope Program (PKH) readiness for information technologies among
and Sembako (staple food) program in 2022 by regional governments and regional government
HIMBARA banks and PT Pos Indonesia. Bank banks, particularly in terms of data connections
Indonesia also provided recommendations and with taxpayers regionally. Furthermore, public
implementation strategies to deal with various literacy in terms of using cashless transactions to
challenges and oversee an uninterrupted payment pay taxes and levies has been increased massively.
system to support the distribution of cashless
assistance to meet the 6T principals (On Time, On c) Electronification of the transportation sector
Target, On Quantity, On Quality, On Price and On and toll roads. In 2022, Bank Indonesia used
Administration). In addition, the Noncash Social synergy to facilitate the electronification of
Assistance Control Team (BSNT) also coordinated new toll road sections. In total, 2,578km of toll
intensively with Bank Indonesia in preparation for roads are operated in Indonesia spanning 69
the digital transformation of social aid program sections. Bank Indonesia regularly coordinates
(bansos) disbursements to support digital economy with the Toll Road Regulatory Agency (BPJT),
and finance integration nationally, as well as appointed Implementation Business Entity
drafting revisions of Presidential Regulation No. 63 (BUP) and relevant PJP partner, which aims
of 2017 concerning the Noncash Social Assistance to prepare the cashless toll road transaction
Control Team (BSNT) and Presidential Regulation system using contactless Multi Lane Free
concerning Reform of the Social Protection System Flow (MLFF) technology based on industry
(Perlinsos). capacity and capabilities as well as public
readiness. Bank Indonesia also expanded the
b) Electronification of Regional Government electronification of payments for river, lake and
Transactions. Bank Indonesia also supports ferry transportation (ASDP) in collaboration with
the expansion and acceleration of regional the state-owned Indonesia Port Corporation,
digitalisation through the Regional Government namely PT Pelindo. In 2022, nearly all branches
Transaction Electronification (ETPD) program. of PT Pelindo implemented the electronification
By the end of 2022, based on the ETPD Index, a of payments through goods passes, vehicle
total of 84 regional governments had levelled up passes and passenger passes. Bank Indonesia
to the digital stage (3 provincial governments, 12 also expanded in 2022 the ecosystem (regions)
city governments and 69 regency governments). for the electronification of transportation using
Cumulatively, a total of 283 regional governments chip-based electronic money on ferry crossings in
have reached the digital stage, accounting for eight ASDP regions, namely North Sumatra, Riau
52.20% of 542 regional governments. ETPD Islands, West Nusa Tenggara, East Kalimantan,
primarily aims to increase regional cashless and East Java, Central Java, South Kalimantan and
digital services for tax payments, levy payments South Sulawesi.

Bank Indonesia also continued facilitating economy and finance ecosystem. Since initiation
payment electronification in the transportation on 17th August 2021, SNAP implementation, which
sector in order to oversee the compliance of was developed through collaboration between
electronification practices with prevailing Bank Indonesia and the Indonesia Payment System
Bank Indonesia payment system regulations. Association (ASPI), has been accelerated as the
Facilitation was achieved in coordination with national protocol standard and instruction to
the Ministry of Transportation, Ministry of Public facilitate open interoperability between applications
Works and Housing, Provincial Government for processing payment transactions.
of Jakarta, transportation/toll road operators
and PJP. In 2022, facilitation aimed to: (i) The first stage of SNAP implementation focused on
foster implementation of Multi-Applet Secure 15 market leaders involved in preparing SNAP as first
Access Module (SAM) for land, rail and sea/ movers. In the first semester of 2022, all first movers
ferry transportation modes, (ii) advance the successfully implemented 324 API subservices for
electronification of off-street and on-street 19 service users. After this success, Bank Indonesia
parking, (iii) oversee implementation of integrated ensured that other PJP with proprietary API-based
transportation modes in the Jabodetabek region, services (second movers) migrated those services
and (iv) advance electronification of the Buy the using SNAP. Based on the mapping of all PSP, 66
Service program and support transportation in PSP were identified as second movers. As of 30th
national tourism strategic areas (KSPN). December 2022, 63 PSP (96%) had completed
implementing the obligations for 863 API subservices
d) Intensification of cashless payment system services for 122 service users.
at travel destinations. Bank Indonesia also intensified
payment services at travel destinations in line with The expansion of SNAP implementation is expected
the post-pandemic revival of the tourism sector. to strengthen the interlinks between banks and non-
This primarily targeted super-priority, priority bank PSPs, and maintain a level playing field, thereby
and flagship destinations at 18 travel destinations, reducing fragmentation and accelerating the digital
particularly around Lake Toba, Borobudur- economy and finance in Indonesia.
Joglosemar, Mandalika, Labuan Bajo, Bromo Tengger
Semeru, Wakatobi, Tanjung Kelayang, Tanjung 21) Synergy to leverage digital economy and finance
Lesung, Thousand Islands, Jakarta Old Town and data for the public, targeting a minimum of creating
Morotai. Various efforts to advance digitalisation 10 million payment IDs
in the tourism sector involve the electronification of
transportation to and from travel destinations (ports, Bank Indonesia consistently collaborates in synergy
airports and parking), entry tickets, accommodation, with relevant stakeholders to create payment IDs
food service activities and MSMEs. In addition, Bank and digital transaction profiles in order to optimise
Indonesia also encouraged the use of applications/ the use of digital economy and finance data.
websites with payment system features in line with Consequently, 14.2 million payment IDs were created
the new normal of the tourism sector. by the end of 2022. Payment IDs were developed as
a unique key/parameter that electronically connects
20) Synergy in the development and supervision of disbursements of various subsidies and government
the payment system industry, while establishing transfers to individual bank accounts eligible to
interlinks between FinTech and the banking industry, receive such benefits. Subsidy beneficiaries are
targeting at least 10 PJP using Open Application identified and authenticated based on their payment
Programming Interfaces (API) for Payments ID, including the digital Know Your Customer (KYC)
process. The strategy will not only enhance the
Bank Indonesia effectively strengthened SNAP accuracy of government subsidy disbursements yet
application by involving first movers as market will also encourage broader economic and financial
leaders to accelerate development of the digital inclusion. Leveraging digital economy and finance

Arrangement
data will be expanded to the data obtained from also supported by the criteria for CCP members,
various applications, including the National Merchant which are consistent with the roadmap for
Repository (NMR), National Payment Gateway participation in payment system infrastructure
(GPN), and BI-FAST credit transfer data. and other financial market infrastructures at Bank
Indonesia.
4.7 SP 07 – Accelerating money
market deepening to strengthen Since implementation on 30th June 2021, a significant
the effectiveness of Bank Indonesia increase in the number of MMS FX Spot participants
policy transmission and economic has been recorded from 21 banks in June 2021 to
financing synergy, based on 3 KPIs as 41 banks in December 2022. This was accompanied
by a commensurate increase in the daily average
follows:
transaction volume of USD/IDR spot transactions
from USD43 million in 2021 to USD123 million in
22) Integrated, interconnected and interoperable
2022.
money market infrastructure that is secure and
reliable through the institutional development
Bank Indonesia also initiated Focus Group Discussions
design of Financial Market Infrastructure (FMI)
(FGD) with the involvement of various parties,
Multi-Matching Systems (MMS) and Central
including the Ministry of Finance, OJK, IDIC, IFEMC,
Counterparties (CCP)
HIMDASUN, and self-regulatory organisations
(SRO), namely the Indonesia Stock Exchange (IDX)
Bank Indonesia has successfully prepared an optimal
and Indonesia Stock Market Clearing House (KPEI),
and comprehensive development design for FMI
thus strengthening coordination between financial
MMS and CCP in response to the latest money market
sector authorities and market players to support
development dynamics and in anticipation of market
integrated financial market development. One
needs and future digital technological advancement.
recommendation that emerged from the coordination
The various recommendations from evaluating MMS
was the development of Alternative Market Operator
Foreign Exchange Spot (FX Spot) implementation and
Systems (SPPA) as alternative trading platforms for
the results of the MMS DNDF assessment will become
repo, tri-party agent and CCP repo transactions,
the focus of subsequent development. Furthermore,
thereby supporting post-trade transactions to
CCP sustainability in accordance with best practices
enhance the efficiency of the reporting system.
through industry involvement (diversification of CCP
ownership, including by banks) is still coordinated
23) Diverse, liquid, efficient and transparent Rupiah
through the Indonesian Foreign Exchange Market
money and foreign exchange markets with integrity
Committee (IFEMC).
based on the following targets: (i) minimum ratio
of DNDF to derivative transactions of 7%, and
In 2022, Bank Indonesia undertook institutional
(ii) minimum ratio of repo to total money market
strengthening by licensing two Electronic
transactions of 40%
Trading Platforms (ETP), which included
exploring the potential expansion of the range
In 2022, Bank Indonesia successfully developed and
of products transacted via ETP. Bank Indonesia
deepened the foreign exchange market with a focus
also strengthened coordination with other
on DNDF transactions. The DNDF development
authorities, market associations and industry
initiative provided transaction flexibility as follows:
players to accelerate the establishment of CCPs,
(i) relaxing the DNDF buy threshold, (ii) expanding
as systemically important financial market
underlying transactions, and (iii) price setting
infrastructures, in integrated, interconnected and
efficiently through publication of non-USD/IDR
interoperable (3I) money markets and foreign
reference rates on the official website of Bank
exchange markets in terms of technological and
Indonesia. DNDF transactions were also developed
non-technical readiness. Such development was

by refining transaction regulations in the foreign Consistent with the successful development and
exchange market by streamlining and integrating deepening of the foreign exchange market, Bank
provisions according to a principle-based approach. Indonesia has also developed the Rupiah money
This is expected to increase the implementation market. This was achieved, among others, by
effectiveness and flexibility of rules and regulations developing repo transactions and strengthening
for market players, thereby deepening the markets rupiah reference rates. Repo transactions were
and supporting financial system stability. developed in close synergy with the relevant
authorities and industry associations, including: (i)
Bank Indonesia's success in terms of developing various standardisation of repo transactions between market
initiatives and maintaining the national economic players and OMO repo transactions with Bank
recovery has increased market confidence in DNDF Indonesia, (ii) provision of repo price information,
transactions. Average daily DNDF transaction volume and (iii) expansion of the non-bank participant base.
increased from USD102 million in 2021 to USD120 Through such synergy, average daily repo transaction
million in 2022. Non-USD/IDR DNDF transactions also volume increased from Rp4.4 trillion in 2021 to
recorded similar performance, particularly EUR/IDR, Rp7.3 trillion in 2022, while the average ratio of repo
SGD/IDR and JPY/IDR DNDF transactions. Average transactions to total money market transactions also
Non-USD/IDR DNDF transaction volume in 2022 increased in the same period from 39% of 42.8%.
stood at USD553,000 per month, up significantly from
USD21,000 per month in 2021. The surge of DNDF Bank Indonesia also strengthened the domestic
transactions was in line with higher foreign capital benchmark reform by establishing the Overnight
inflows to Indonesian securities, which triggered Index Average (IndONIA) as the rupiah reference rate
additional demand for hedging among foreign players. for overnight tenors. This was accompanied by the
This was also supported by the availability of non- publication of guidelines for using IndONIA as the
USD/IDR reference rates for 14 foreign currencies rupiah reference rate for non-overnight tenors for
published since the middle of 2022. various financial products in IndONIA-based markets.
Bank Indonesia Special Week Expo 2020 Dubai: “Home for Halal Business International Promotion 2022”

Arrangement
24) Bank Indonesia synergy within the Coordination of Inclusive Bank Indonesia Sukuk (SukBI), (iii)
Forum for Development Financing through Financial development of sharia hedging swap transactions
Markets (FK-PPPK) to revive economic financing by with Bank Indonesia, and (iv) strengthening sharia
completing follow-up agreements in accordance with money market players by increasing competencies
the authority of Bank Indonesia and integrity and applying mandatory treasury
certification and market code of conduct.
Bank Indonesia continued its commitment to
synergise with government policy, including the area At the end of the second quarter of 2022, average
of financial market development. Such synergy is daily growth of the sharia money market reached
implemented within the FK-PPPK corridor. In 2022, 16.54% (ytd). Against a backdrop of elevated financial
various milestones were achieved and work programs market uncertainty and a shallow sharia investor
implemented well, including: (i) development of asset base, average daily growth of the sharia money
securitisation with underlying MSME loans/financing, market was recorded at 8.05% (ytd) in the fourth
(ii) development and piloting of environmental, social quarter of 2022. Bank Indonesia constantly strived
and governance (ESG) financing instruments and towards accelerating growth of the Sharia Interbank
derivative transactions, and (iii) implementation of Money Market (PUAS), while expanding the investor
programs to expand the retail investor base through base and PUAS issuers, which included an assessment
the Like It campaign, which focused on financial of Sharia Commercial Securities (SBK).
literacy in terms of green financial instruments and
sharia-compliant financial instruments. Synergy In terms of disbursed financing by sharia banks,
was also pursued by harmonising money market tax strengthening the accommodative macroprudential
regulations to support the development of money policy stance successfully led to national realisation
market instruments as a source of financing for of the Sharia Macroprudential Intermediation Ratio
national economic development. (Sharia MIR) at 84.05%, with 77.53% for sharia
commercial banks and 99.77% for sharia business
4.8 SP 08 - Developing Bank units. This was achieved through policy incentives
Indonesia policy in synergy with for banks disbursing financing to priority sectors and
the policies of National Islamic MSMEs, for which Islamic finance was also eligible.
Economy and Finance Committee
26) Bank Indonesia’s contribution to supporting sharia
(KNEKS) and other parties to
businesses based on the following targets: (i)
support development of the sharia
empowering a minimum of 165 sharia businesses,
economy and finance, based on 3
and (ii) increasing the revenue and business linkages
KPIs as follows: generated through the Indonesia Shari’a Economic
Festival (ISEF) activities (including the Sharia
25) Bank Indonesia’s contribution to reviving Islamic Economic Festivals - FESyar) by minimum of 5% on
finance, as reflected by: (i) average daily growth of the the achievements of 2021.
sharia money market, and (ii) Sharia Macroprudential
Intermediation Ratio (Sharia MIR) Bank Indonesia continued strengthening
implementation of the sharia economic empowerment
Bank Indonesia ensured the availability of Islamic strategy to increase the number and capacity of sharia
finance through sharia money market deepening businesses, while simultaneously strengthening
and strengthening bank financing. In terms of the institutional arrangements and infrastructure.
money market development, innovative sharia Successful implementation of the pesantren-based
financial instruments were developed in synergy sharia business empowerment program initiated
with the sharia authorities to ensure sharia by Bank Indonesia included: (i) development of
principles are always maintained, which included: 151 new pesantren (Islamic boarding schools), (ii)
(i) expansion of Sharia-Compliant Interbank Fund capacity building at 152 existing pesantren, and
Management Certificates (SiPA), (ii) issuance (iii) development of the halal value chain (HVC)

ecosystem through the Integrated Farming with and non-formal channels to increase the level of
Technology and Information (INFRATANI) Program, public literacy regarding the sharia economy and
Export-Oriented Horticultural Business Network finance. These activities were implemented by
(Juara Ekspor), and Center of Excellence. Bank Indonesia through collaboration with various
stakeholders, including the Indonesian Council of
In October 2022, Bank Indonesia again hosted a series Ulama (MUI), various universities, Islamic community
of activities for the 9th Indonesia Shari’a Economic organisations, mass media, and the Indonesian
Festival (ISEF), organised as a hybrid event in Association of Economics Teachers to raise the Sharia
Jakarta, which recorded sales and business matching Economic Literacy Index.
transactions totalling Rp27.6 trillion, up 6.79% on
2021. This includes financing disbursed by sharia 4.9 SP 09 - Strengthening the
financial institutions through the Islamic Finance effectiveness of international
Month, business-to-business (B2B) transactions, cooperation to support monetary
business-to-customer (B2C) transactions and and macroprudential policies, the
transactions at the ISEF 2022 exhibition itself,
payment system and rupiah currency
including all FESyar 2022 activities.
management policies as well as
other policies to create and maintain
The theme of the 9th ISEF in 2022 was consistent with
the theme of Indonesia’s G20 Presidency of the same
macroeconomic and financial system
year, namely “Recover Together, Recover Stronger: stability, while striving for the
Optimising the Sharia Economy and Finance for interests of Bank Indonesia and/or
Inclusive Recovery”. ISEF activities were preceded by the Indonesian economy, based on 4
various FESyar 2022 activities as part of the Road to KPIs as follows:
ISEF program. Sharia Economic Festival (FESyar) in
2022 were held in three regions, namely in Makassar 28) Positive perception of international institutions
for Eastern Indonesia, Banda Aceh for the Sumatra and global investors towards the Indonesian
region and Surabaya for the Java region. In addition, economy, with a balanced view reports published by
Bank Indonesia organised other supporting programs international organizations and rating agencies.
for ISEF, including the 1st Indonesia International
Modest Fashion Festival (IN2MOTIONFEST) 2022 as Bank Indonesia successfully maintained positive
an event to establish Indonesia as the qibla of modest international perception concerning Bank Indonesia's
fashion globally, along with a national movement to credibility and the Indonesian economy to preserve
accelerate halal certification and strengthening the macroeconomic and financial system stability amid
Global Halal Hub ecosystem. global economic uncertainty. Bank Indonesia ensures
the outlook, risks and challenges facing Indonesia’s
27) Level of public understanding regarding the sharia economy are presented and narrated in a balanced
economy and finance through research, assessments way in the reports published by international
and education, targeting a Sharia Economic Literacy institutions and rating agencies. In 2022, Bank
Index of 19% (well literate) Indonesia’s successful efforts to maintain positive
perception concerning Indonesia’s economy were
The Sharia Economic Literacy Index in 2022 stood indicated in two reports published by international
at 23.3%, implying that out of 100 Muslim adults in organisations, which presented a balanced view of the
Indonesia, 23 are considered well literate regarding Indonesian economy, as well as five reports published
the sharia economy. Greater literacy was inextricably by rating agencies that maintained the sovereign
linked to Bank Indonesia's efforts implementing credit rating (SCR) of Indonesia at the investment
various educational and socialisation activities grade level. The balanced reports published by
for the public through formal (academic) channels international organisations in 2022 were as follows:

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Sharia Economic Festival (FESyar) in Eastern Region of Indonesia (KTI)
i) IMF Article IV Consultation for Indonesia, Bank Indonesia also continued demonstrating its
which recognised Indonesia’s successes in terms credibility by receiving international recognition in
of maintaining economic and financial sector various other aspects, including:
stability during the pandemic, supported by i) Best Central Bank of the Year from the Global
solid macroeconomic performance as well as Islamic Finance Award (GIFA)
an optimal and comprehensive policy response. ii) Cyber Resilience Initiative from the Central
The policy response included a policy package Banking Publication
contained in the National Economic Recovery iii) Gold Winner in the category of Best Annual
Program (PEN), an accommodative monetary Report, Government Agency at the International
policy stance, and efforts in the financial sector to Business Awards (IBA) 2022 Stevie Award
revive credit growth, and iv) Gold Winner in the category of Non-Traditional
ii) The 2022 Annual Consultation Report Annual Report, Banks: National at the 2022 ARC
on Indonesia published by the ASEAN+3 Awards International XXXVI
Macroeconomic Research Office (AMRO), which v) Best Use of Training at the Engage Awards
assessed the Indonesian economy in 2022, vi) Best Conduct of a Business Regulator in Asia-
demonstrating resilience against the Covid-19 Pacific at The Asian Banker Regulation and
pandemic, and emphasised that the Government Supervision Awards
and Bank Indonesia policy mix continued vii) Best Asset Owner Regional (Southeast Asia) at
supporting the Indonesian economy. the Institutional Excellence Awards
Furthermore, the five rating agencies that maintained viii)Contact Centre World Awards
Indonesia’s sovereign credit rating were as follows: ix) SCOPUS accreditation for the Bulletin of
i) Fitch held Indonesia’s SCR at BBB with a stable Monetary Economics and Banking (BMEB) and
outlook. Journal of Islamic Monetary Economics and
ii) S&P held Indonesia’s SCR at BBB and upgraded Finance (JIMF). The pride of this achievement
the outlook from negative to stable. was strengthened by the publication of 33
iii) Moody’s held Indonesia’s SCR at Baa2 with a Bank Indonesia's research papers published in
stable outlook. 27 international journals indexed by Scopus,
iv) JCR held Indonesia’s SCR at BBB+ with a stable including the CBDC White Paper, entitled
outlook. Project Garuda – Navigating the Architecture of
v) R&I held Indonesia’s SCR at BBB+ with a stable Digital Rupiah.
outlook.

Bank Indonesia also remained active through various towards the inexorable digitalisation of payment
leadership roles and memberships of international systems. Strengthening also intends to support efforts
forums. Bank Indonesia representation at international to foster regional payment connectivity (RPC) by
forums was primarily strengthened in 2022 by Bank facilitating transaction settlement between ASEAN-5
Indonesia’s role in Indonesia’s G20 Presidency. Bank countries in local currencies, thereby bolstering cross-
Indonesia also played a leadership role in: (i) ASEAN, (ii) border trade and investment in the region. The MoU
ASEAN+3, (iii) Bank for International Settlements - BIS on Cooperation in RPC between five ASEAN central
(Chairman of the Asian Consultative Council – ACC), (iv) banks, as a recent G20 milestone, marks Indonesia’s
Executives’ Meeting of East Asia Pacific Central Banks ASEAN Chairmanship in 2023, thereby establishing
(EMEAP), (v) Islamic Financial Services Board – IFSB ASEAN as a global policy reference (ASEAN for Global).
(Chair of the Executive Committee), and (vi) International
Islamic Liquidity Management Corporation (IILM). Bank Indonesia also continued working in synergy
with various parties to implement joint proactive
29) LCS optimisation in bilateral trade, targeting a and targeted socialisation measures, while exploring
minimum 1.50% market share of LCS transaction the provision of convenient facilities and incentives
value to total trade value in the Republic of for business players using local currencies to further
Indonesia with several trading partners expand the use of this scheme. Towards the end of
2022, Bank Indonesia and the Directorate General
Bank Indonesia successfully increased the total of Customs and Excise (DJBC), Ministry of Finance,
value of local currency transactions with four agreed an initiative to provide customs benefits
existing partner countries, thereby supporting to exporters and importers using local currency
the optimisation of local currency settlement in transactions. This includes providing streamlined
bilateral trade between Indonesia and trading processes to expedite customs clearance.
partner countries. In 2022, the market share of LCS
transactions with partner countries to total trade 30) Synergy to advance Indonesia’s position in
value was recorded at 1.87%. international forums across various strategic areas,
with Bank Indonesia’s position/stance in various
Bank Indonesia has also implemented various strategic areas accepted by international forums/
initiatives to support this achievement, including organisations/cooperation
efforts to expand cooperation with new partner
countries through the signing of a Memorandum Bank Indonesia’s efforts to advance the interests
of Understanding (MoU) between Bank Indonesia of Bank Indonesia and/or the national economy of
and the Monetary Authority of Singapore (MAS) in the Republic of Indonesia in international forums/
August 2022 as a form of joint commitment to build organisations/cooperation have been very fruitful. In
a framework and implement a scheme using local 2022, as many as 38 of Indonesia’s positions/stances
currencies for bilateral transactions between the were accepted by international forums/organisations/
two countries moving forward. In addition, Bank cooperation, including ASEAN, Bank for International
Indonesia also strengthened the LCS cooperation Settlements (BIS), ASEAN+3, Executives’ Meeting
framework for implementation with partner countries of East Asia Pacific Central Banks (EMEAP), Asia-
commencing in 2023. This was achieved through a Pacific Economic Coordination (APEC), International
leapfrog strategy and in response to the challenges Monetary Fund (IMF) and Organisation of Islamic
faced when implementing the existing framework. By Cooperation (OIC). Indonesia’s position/stance
strengthening the scheme, the scope of cooperation was accepted on a number of issues, including
will be expanded incrementally to not only cover trade macroeconomic and financial system stability, digital/
and investment, but also all bilateral economic and payment systems, financial market deepening and
financial transactions between Indonesia and partner sustainable finance, economic and financial inclusion,
countries, which includes synergy with cross-border trade/investment, sharia economy, and institutional
payment system initiatives as an anticipatory measure arrangements of central banks.

Arrangement
Bank Indonesia also regularly provides data to the strategy policies, (ii) overcoming the scarring effect
IMF, World Bank, ASEAN Secretariat, United Nations of the pandemic, (iii) payment system innovation in
Conference on Trade and Development (UNCTAD), the digital era, (iv) fostering sustainable finance, (v)
and other international organisations. Bank Indonesia increasing financial inclusion, and (vi) international
also actively contributes to various international tax reform.
forums on statistics and chaired the ASEAN Working
Group on International Investment Statistics (WGIIS) Indonesia’s G20 Presidency also produced
in 2022. In terms of Indonesia’s G20 Presidency documents that achieved consensus from all G20
in 2022, Bank Indonesia actively contributed and members despite heightened geopolitical tensions.
attended meetings with the Interagency Group In the finance track, Indonesia’s G20 Presidency
on Economic and Financial Statistics, consisting of produced a communiqué in February 2022 and
the IMF, Organisation for Economic Co-operation Chairs' Summary in June and October 2022. The
and Development (OECD), Bank for International documents summarise the commitments, agreements
Settlements (BIS), European Central Bank (ECB), and work of the G20 finance track, covering five
Financial Stability Board (FSB), United Nations (UN) steps. First, supporting economic recovery as well as
and Eurostat, as well as workshops organised by maintaining macroeconomic and financial stability
the Interagency Group on Economic and Financial through well-calibrated, well-planned and well-
Statistics (IAG) to maintain the interests of Indonesia communicated policies. Second, supporting food and
during discussions of the workplan for the new G20 energy security as well as increasing market stability.
Data Gaps Initiative (G20 DGI). In terms of Indonesia’s Third, achieving the Sustainable Development Goals
role as Chair of the International Monetary Financial through sustainable finance. Fourth, advancing
Committee (IMFC), representing the South-East implementation of the cross-border payments agenda,
Asia Voting Group (SEAVG) constituency at the IMF strengthening financial regulation, and nurturing
in 2022, Bank Indonesia was actively involved in digitalisation to support financial inclusion. Fifth,
coordinating the submission of positions at the IMF, strengthening international financial architecture
particularly regarding the importance of an integrated and fostering implementation of an international tax
policy framework, institutional issues at the IMF, and package. The communiqué and Chairs' Summary in
initiatives to channel financing to countries in need. the finance track served as the basis for subsequent
In addition, Bank Indonesia also actively collaborated high-level communiqué in the form of the G20 Bali
with relevant ministries/agencies to prepare the Leaders’ Declaration at the G20 Summit in November
national stance regarding the feasibility of meeting 2022. In the Leaders’ Declaration, the G20 committed
and utilising the new DGI recommendations involving to taking coordinated actions to advance an agenda
government ministries and agencies. for strong, sustainable, inclusive and balanced global
recovery.
31) Effective implementation of G20 Presidency
that advances the interests of Bank Indonesia, as Consensus was achieved due to Indonesia’s strong
reflected by: (i) number of recommendations for diplomatic efforts among G20 countries to continue
G20 Presidency priority agenda accepted by G20 the meetings amid intense pressure from several
members, and (ii) stakeholder satisfaction level with key G20 members regarding the Russia-Ukraine
G20 Presidency implementation geopolitical crisis. Indonesian diplomacy also
successfully ensured that all scheduled sessions
In conjunction with the Ministry of Finance as well as were completed, thus proving the commitment of
other relevant government ministries/agencies, Bank G20 members to maintain the integrity of the G20
Indonesia successfully implemented Indonesia’s forum. From an implementation perspective, the
G20 Presidency in 2022 with the theme “Recover success of Indonesia’s G20 Presidency was reflected
Together, Recover Stronger”. Under Indonesia’s G20 in the signing of the RPC MoU by five ASEAN
Presidency, the G20 accepted six priority agendas in central banks as one of the efforts to strengthen
the finance track as follows: (i) post-pandemic exit and increase the effectiveness and efficiency of

cross-border payments among ASEAN countries innovation to support business process re-engineering
to support regional economic recovery and more and strategic management, as well as synergy in
inclusive growth. developing methodologies to strengthen efficient
financial performance. In terms of compliance, the
The successful implementation of the series of events focus covered strengthening the legal mandate of
and side events for Indonesia’s G20 Presidency by Bank Indonesia in alignment with the goals, duties
Bank Indonesia was also reflected in stakeholder and authority of Bank Indonesia as mandated in
satisfaction, scoring 5.35 (very good) on a scale of 1-6. prevailing laws and regulations. The institutional
In addition to demonstrating Indonesia’s leadership policy mix framework was also strengthened by the
on the international stage, the G20 Presidency also Bank Indonesia Green Institution Framework as the
signalled a revival of the tourism sector and promoted tangible manifestation of Bank Indonesia’s role in
flagship Indonesian products to the world. implementing environmentally friendly policies when
executing the duties and functions of Bank Indonesia.
4.10 SP 10 - Strengthening institutional
policy effectiveness to achieve excellence Bank Indonesia continued strengthening the
and support Bank Indonesia credibility, institutional policy mix to ensure performance
based on 5 KPIs as follows: excellence in addressing the latest dynamic challenges
in line with strengthening the main policy mix.
32) Strengthening the institutional policy mix
framework to strengthen performance excellence 33) Maintaining the Unqualified Opinion (WTP)
at Bank Indonesia
In May 2022, Bank Indonesia received an unqualified
Bank Indonesia continued strengthening its opinion from the Audit Board of the Republic
Institutional Policy Mix (BKK) to address the various of Indonesia (BPK-RI) for the Annual Financial
dynamics of the increasingly complex strategic Statements published in 2021. This demonstrates
environment and thus more optimally supporting that Bank Indonesia has consistently maintained
implementation of the main policies and realising Bank governed financial management, from planning,
Indonesia’s vision for 2025. By the end of 2022, several implementation, monitoring and control to
advancements to the framework and regulations, in evaluation.
order to strengthen the business process oriented
towards digitalisation and enhancing efficiency while In April 2023, Bank Indonesia again received an
maintaining good governance, had been finalized and unqualified opinion from the Audit Board of the
stipulated in the form of regulations. The institutional Republic of Indonesia (BPK-RI) for the Annual
policy mix and 2EC assessments are an evolving Financial Statements published in 2022. An
process implemented gradually in harmony with unqualified opinion has been maintained by Bank
the stages of methodological development and data Indonesia for 20 consecutive years, thus reflecting BI
centre development. Strengthening the institutional commitment to good governance and consistency, as
policy mix based on 2EC was also supported by well as enhancing the quality of financial management
strengthening institutional policies with a focus on to maintain credibility as a central bank.
synergy between effective performance, efficient
performance and compliance. 34) BI Governance Maturity at level 3, or Progressive
(scale of 1-5)
In the area of effective performance, the focus of
strengthening efforts was oriented towards planning Bank Indonesia maintained good governance in the
and managing work programs in harmony with risk execution of duties, as reflected in Governance Maturity
assessments and audits. Meanwhile, the focus of at the level of Progressive, with an index score of 4.05
efficient performance was directed towards digital out of 5. Governance maturity covers the following:

Arrangement
a) Bank Indonesia Good Governance Maturity at the 35) Issuance of regulations as mandated by law and the
level of Enhanced. This maturity level continues implementation of frameworks/blueprints/master
the upward trend from previous years and plans
demonstrates confidence that BI governance is
well maintained. Bank Indonesia issued several regulations
b) Bank Indonesia Risk Management Maturity concerning external and internal parties at Bank
(MRBI) at the level of Managed, with a score of Indonesia. Through a periodic review mechanism,
4.05 on a scale of 1-5. This improves on the 3.98 Bank Indonesia continued maintaining regulatory
scored in 2021, indicating that risk management conformity in accordance with the mandate of law,
is sound and already integrated with governance. dynamics in the external strategic environment and
c) Bank Indonesia Task Continuity Management adjustments to business processes in line with the
Maturity (MKTBI) with a score of 4.25 on a implementation of frameworks/blueprints/master
scale of 1-5. This improves on the 4.06 scored in plans. In 2022, regulations were issued as required to
2021, indicating that MKTBI implementation is support the policy and institutional mix as well as to
standardised and documented, with performance maintain task implementation as mandated by law.
targets and measurable achievements.
d) Audit Maturity at the level of Integrated, or level When issuing regulations and as part of strengthening
3, implying that the management and professional the legal framework to support policy effectiveness,
practices of the internal audit have been the regulatory formulation process is implemented
implemented comprehensively. This improves on through: (i) a comprehensive legal assessment
the level 2, or Infrastructure, achieved in 2021. in key policy areas and institutional policies, and
In addition to audit maturity, the quality of the (ii) a harmonisation process with other laws and
internal audit function at Bank Indonesia was regulations. This aims to ensure that the regulations
also reflected in the Integrity Assessment Survey issued are always in line with the duties and authority
(SPI) performed by the Corruption Eradication of Bank Indonesia to achieve its goals. This process
Commission (KPK). For two consecutive years, also ensures conformity with legal principles as well
the Integrity Assessment Survey of Bank as other laws and regulations in accordance with
Indonesia has performed well in all dimensions regulatory governance.
of integrity. Bank Indonesia also achieved the
highest Integrity Index in the category of Non- 36) Transparency rating for a public institution of
Ministerial Institutions with a value of 87.28, Towards Informative (second highest of 5 categories)
which is significantly above the national average
of 71.94. This reflects optimal performance in As a public institution, Bank Indonesia is firmly
terms of realising a clean government governance committed to maintaining the principles of
system. transparency, accountability and responsibility in
e) Procurement Maturity Assessment (PMA) at the the execution of duties. Through public information
level of Proactive to maintain the achievement disclosure practices, Bank Indonesia provides
in 2021. Achieving the level of Proactive reflects opportunities for the public to participate in
a procurement function at Bank Indonesia administering the state and encourages bureaucracy
with a focus on meeting the needs of internal to increase the quality of information management
and external stakeholders through process and services towards realising good governance and
standardisation and governance as well as clean government.
strengthening the planning function.
Fulfilling the public right to information, Bank
Bank Indonesia's success in maintaining its maturity Indonesia refers to Act Number 14 of 2008
level was supported by the implementation of most concerning Public Information Disclosure to
recommendations from the previous year. provide and/or publish public information under

the authority of Bank Indonesia based on requests viii)Silver in the Internal Media category,
for information by public. This is done quickly, Print Magazine subcategory for the Fokus
timely, at low cost and in a simple, accurate and Magazine.
not misleading way. Applying public information
disclosure principles in 2022, Bank Indonesia f) PR Indonesia Awards (PRIA) 2022 as follows:
implemented initiatives, innovation as well as i) PRIA Platinum Award 2022.
synergy and collaboration, receiving recognition ii) Gold in the Print Media subcategory (BICARA
and appreciation from various global and national edition 89 of 2021).
communities through the following awards: iii) Silver in the Print Media subcategory (BICARA
a) Maintaining its achievements at The Best Contact edition 90 of 2021).
Centre Indonesia (TBCCI) 2022, namely 2nd iv) Bronze in the e-Magazine subcategory
runner up or 3rd place out of 46 institutions/ (BICARA edition 89 of 2021).
companies and retaining the award for Best Small v) Silver in the Website subcategory (www.bi.go.
Contact Centre of a Public Institution, receiving a id).
total of 17 awards across all categories, namely 5 vi) Silver in the Application subcategory (BI
platinum, 8 gold, 3 silver, and 1 bronze. Mobile).
b) 10 gold and 1 silver in the international category
at the 17th Global Top Ranking Performers Awards g) In-House Magazines (INMA) Award 2022. Bank
hosted by Contact Centre World (CCW). Indonesia received the following awards:
c) 9 gold and 2 silver for the Asia-Pacific region at i) Gold Winner for edition 63 of the printed
the 17th Global Top Ranking Performers Awards version of Fokus Magazine in the Ministry/
hosted by Contact Centre World (CCW). Agency/Government category.
d) Certified World-Class for the Public Service ii) Gold Winner for edition 63 of the digital
Center category 2022. version of Fokus Magazine in the Ministry/
e) Indonesia Public Relations Awards (AHI) Agency/Government category.
presented to public institutions, including iii) Silver Winner for edition 87 of the printed
government ministries/agencies. Bank Indonesia version of BICARA Magazine in the Ministry/
received the highest award, namely Platinum, in Agency/Government category.
the institution category as follows: iv) Silver Winner for edition 87 of the digital
version of BICARA Magazine in the Ministry/
i) Gold in the Best Information Management Agency/Government category.
and Documentation Officer (PPID) category,
Main PPID subcategory. As the culmination of Bank Indonesia’s commitment
ii) Gold in the Internal Media category, Print to transparency in 2022, the Central Information
Magazine subcategory for 3 editions of the Commission (KIP) awarded Bank Indonesia the
BICARA Magazine. predicate of ‘Informative Public Agency’, as the
iii) Gold in the Internal Media category, highest qualification for public information disclosure
e-Magazine subcategory for 2 editions of the in Indonesia. The award reflects optimal Bank
BICARA Magazine. Indonesia's performance in terms of managing and
iv) Gold in the Internal Media category, servicing public information transparently.
e-Magazine subcategory for 2 editions of the
Fokus Magazine. In 2022, Bank Indonesia communication focused on
v) Gold in the Digital Channel category, Website managing expectations and literacy relating to the
subcategory. Bank Indonesia policy mix in terms of maintaining
vi) Silver in the Public Information Services economic stability and accelerating the national
category, Public Information Services Space economic recovery. In addition to the policy mix, Bank
subcategory. Indonesia also delivered information concerning:
vii) Silver in the Digital Channel category, (i) the main events and side events of Indonesia’s
Applications subcategory. G20 Presidency in 2022, in synergy with relevant

Arrangement
government ministries/agencies, (ii) expansion of the carries out repositioning, secondments and employee
payment system digitalisation ecosystem, including development based on the attributes of the employee
the expansion of BI-FAST implementation and and the position in order to maintain a high person to
increasing QRIS users, (iii) adequate currency fit for job fit level.
circulation, and (iv) the Love, Pride and Understanding
Rupiah campaign. In addition to internal fulfilment, Bank Indonesia
also implements external fulfilment. In 2022, the HR
Bank Indonesia fulfilled public information recruitment process involved general recruitment
transparency by optimising various policy and targeted recruitment in cooperation with the
communication channels through accountability Career Development Centres of 15 prominent
reports in accordance with legal obligations, while state universities in Indonesia. To support the
organising post-RDG press conferences, focused fulfilment of human resources with educational
discussions, publications on television and in print backgrounds at the master’s and doctoral levels from
media, information presented on the official website various international universities, HR fulfilment at
of Bank Indonesia and various social media channels. Bank Indonesia is also undertaken in synergy with
Seeking to provide service excellence, Bank Indonesia institutions that awards scholarships and Indonesian
continued improving the services of the Bank Indonesia student associations abroad.
Contact Centre, BICARA. As part of the efforts
to maintain the milestones accomplished in 2022, In line with the inexorable advance of digital technology
Bank Indonesia continues monitoring and evaluating adaptation in business processes, HR management is
policy communication delivered through various also oriented towards leveraging digital technologies.
communication channels to maintain the highest In 2022, Bank Indonesia developed use cases for
standards of transparency for public institutions. Potential Employee Groups (KPP) and Person to Job
Fit in the internal mapping process for consideration
4.11 SP 11 - Enhancing performance when repositioning employees. The implementation
efficiency through organisational of KPP and Person to Job Fit use cases will be honed
and business process management, further moving forward with the support of big data
human resources, financial resources and data analytics in the area of HR management.
and financial sustainability, based on

1 KPI as follows: 4.12 SP 12 - Enhancing
organisational performance
37) Competent and highly motivated Human Resources efficiency through state-of-the-art
(HR), with a minimum person to job fit target of 80% information systems (IS), premium
logistics and credible procurement,
The challenge of filling HR positions is growing based on 4 KPIs as follows:
in line with the digital megatrend and shift in
HR expectations towards the value proposition. 38) A reliable, highly available and secure Bank
Against that backdrop, Bank Indonesia has retained Indonesia digital business technology platform to
competent and highly motivated human resources, support organisational performance and business
as reflected by the suitability of personal branding process efficiency based on the following targets: (i)
and competency to the position requirements implementation of digitalisation at Bank Indonesia
(person to job fit). At the end of 2022, person to job in accordance with the Bank Indonesia Information
fit level exceeded the 80% target to reach 90.95%. Systems Masterplan (RISIBI), and (ii) reliability,
Achieving the person to job fit level is part of the availability and security of the Bank Indonesia
internal fulfilment strategy. Bank Indonesia regularly digital business platform

Supporting organisational performance and Bank Indonesia consistently optimises the

business process efficiency, Bank Indonesia ensures management and development of data and
the availability of a reliable, highly available and statistics for timely publication, which are available
secure digital business technology platform. At the for utilisation by national and international
end of 2022, Bank Indonesia had implemented 15 stakeholders. The publication of Bank Indonesia
digitalisation programs in accordance with RISIBI/ statistics is the fulfilment of services to national
RIVIBI. In addition, Bank Indonesia also maintained stakeholders and commitment as a member of
the level of reliability, availability and security of various international institutions/forums, such as
its digital business platform through Information the IMF, BIS, G20, World Bank, ADB, and ASEAN.
Technology Service Management (ITSM) and As the national coordinator of IMF-Special Data
maintaining the availability of critical systems. Dissemination Standards (SDDS), the official
Preserving the reliability, availability and security website of Bank Indonesia specifically presents
of the digital business platform was reflected in the publications for economic sectors according to
ITSM maturity level, scoring 3.45 on a scale of 1-5, the applicable SDDS standards. In addition to
while meeting the availability standards based on publication on the website, Bank Indonesia also
the criticality category of 100%. meets statistical commitments by submitting
certain statistics directly to international
Bank Indonesia applied the best practices in organisations. Bank Indonesia has also made it
managing information systems services as follows: possible to fulfil requests for data and statistics for
specific stakeholder needs on various occasions.
a) ISO 20000-1 – IT Service Management and All publications of Bank Indonesia statistics
ISO 27001:2013 – Information Security originate from the reports and surveys conducted
Management System, which focus on by Bank Indonesia and in cooperation with
supporting applications for critical activities at other government ministries and agencies. The
Bank Indonesia, specifically in relation to FMI compilation and publication of data and statistics
and SPBI services, SWIFT and email services. are based on prevailing international standards
b) TIA-942 Data Centre Management at the Data and best practices to maintain international quality
Centre (DC) and Disaster Recovery Centre and international comparability, while continuing
(DRC) facilities. to protect individual data confidentiality.
c) ISO 9000:2015 – Quality Management System
for IS asset management. By the end of 2022, Bank Indonesia submitted
d) CMMI – Capability Maturity Model Integration 71 statistical publications through its website.
for various bias projects under development. The publications include: (i) Indonesia’s Balance
of Payments (BOP) Report, (ii) Indonesia’s
Meanwhile, international recognition of Bank International Investment Position (IIP) Report,
Indonesia was also reflected by the Cyber (iii) Indonesia External Debt Statistics (SULNI), (iv)
Resilience Initiative presented at the Central Indonesia Public Sector Debt Statistics (SUSPI),
Banking’s FinTech RegTech Global Awards 2022. (v) Information on Reserve Assets and Monetary
Bank Indonesia was also recognised nationally with Indicators, (vi) Broad Money Developments, (vii)
the 3rd highest predicate for cyber security maturity Indonesian Economic and Financial Statistics
in the central government sector with a score of 4.2 (SEKI), (viii) Indonesia Financial System Statistics
from the National Cyber and Encryption Agency (SSKI), (ix) Indonesia Payment System and
(BSSN). Financial Market Infrastructure Statistics (SPIP),
and (x) Provincial Economic and Financial Statistics
39) The availability of complete, accurate, current, (SEKDA). SULNI and SUSPI are joint publications
and intact (LAKU) Bank Indonesia data and with the Ministry of Finance.
statistics to meet the needs of all national and
international stakeholders Meanwhile, the data and statistics submitted
directly to international organisations/forums

Arrangement
include: (i) BIS concerning Credit and Money, new DGI recommendations, involving government
Balance of Payments and International Trade, ministries and agencies.
Locational Banking Statistics (LBS) and The Red
Book Statistics; (ii) IMF concerning publication 40) Logistics management in accordance with
of Balance of Payments (BOP), International standards to support performance excellence at
Investment Position (IIP), Exchange Rates, Bank Indonesia
International Reserves and Foreign Currency
Liquidity (IRFCL), Coordinated Direct Investment Bank Indonesia logistics management in 2022
Survey (CDIS), Coordinated Portfolio Investment performed excellently. Logistics management
Survey (CPIS), Financial Access Survey (FAS), includes strategic projects and strategic assets
Financial Soundness Indicators (FSI), Money implemented in accordance with the corresponding
& Banking (SRF), Analytical Accounts of the master plan, consisting of the Bank Indonesia Office
Banking Sectors, and Analytical Accounts of the Complex Master Plan (RIKOPERBI), Bank Indonesia
Central Bank, (iii) OECD concerning Consumer Security and Rescue Master Plan (RIPAMBI), and
Opinion Surveys, Interest Rates, and Monetary the Bank Indonesia Asset Utilisation Master Plan
Aggregates; (iv) The World Bank concerning (RIPABI). Strategic projects were implemented in
Quarterly External Debts Statistics (QEDS) data, accordance with the corresponding stage of the
(v) Asian Development Bank (ADB) concerning master plan and are based on standards/design
Key Indicators Questionnaire (Money and Interest guidelines in accordance with the aspects of
Rates, as well as Balance of Payments), and (vi) effectiveness, efficiency and compliance.
ASEAN Secretariat concerning Data Stock &
Transaction Foreign Direct Investment (FDI) Inward In 2022, RIKOPERBI strategic projects were
& Outward as well as Statistics of International implemented through the management of several
Trade in Services (SITS), with Extended BOP strategic projects. The strategic projects focused on
Services (EBOPS) included therein. supporting G20 implementation, preparing policies
for relocating the capital city, as well as support for
Bank Indonesia is also active and contributes at other strategic projects, which include planning
various international forums relating to statistics, DC strengthening. In 2022, Bank Indonesia also
and chaired the ASEAN Working Group on completed the building development for the
International Investment Statistics (WGIIS) in Bank Indonesia Representative Office of Central
2022. In relation to Indonesia’s G20 Presidency Kalimantan as well as the International Conference
in 2022, Bank Indonesia actively coordinated and Meeting Room to support international events
and attended meetings with IAG, consisting of under Indonesia’s G20 Presidency.
IMF, OECD, BIS, ECB, FSB, UN and Eurostat, as
well as workshops organised by IAG to maintain In accordance with RIPAMBI, strategic asset
the interests of Indonesia in discussions of the management in terms of security is performed with
workplan for the new G20 Data Gaps Initiative a focus on strategy and implementation as well
(DGI). In addition, Bank Indonesia also actively as reviewing implementation recommendations.
collaborates with relevant government ministries/ In 2022, Bank Indonesia implemented Key
agencies when preparing the national stance Management Systems to mitigate and prevent
concerning the feasibility of fulfilling and using the unauthorised access.

Asset optimisation management is conducted development and the expansion of vendors eligible
based on RIPABI in accordance with prevailing to participate in the e-Catalogue, which included
regulations concerning planning, the procurement providing broader opportunities for micro, small
of goods and/or services and asset management, and medium enterprises (MSME) under the
as well as regulations concerning the management mentorship of Bank Indonesia. Furthermore,
of physical assets. In 2022, Bank Indonesia e-Catalogue implementation is also in line with
successfully increased optimisation/utilisation government policy to increase MSME transactions
through a cooperation scheme with stakeholders. through the ‘Bela Pengadaan’ and ‘Bangga Buatan
Seeking to increase asset utilisation, Bank Indonesia’ programs to accelerate the national
Indonesia completed a Highest and Best Use (HBU) economic recovery. In 2022, the e-Catalogue
study and feasibility study for other assets. contained 204 MSME contracts and 10 non-MSME
contracts offering 3,331 products, consisting of
Improving and maintaining the quality of consistent food and beverages, handicrafts, fashion, furniture
document management at Bank Indonesia, Bank and office stationery. The value of e-Catalogue
Indonesia has implemented ISO 15489 Records transactions in 2022 total Rp3.6 billion.
Management since 2015. In 2022, four additional
work units earned a Statement of Compliance for Bank Indonesia implements various strategies to
ISO 15489 Records Management and 57 other work realise integrated, modern and digital planning
units maintained their Statement of Compliance for and procurement, thereby increasing efficiency,
ISO 15489 Records Management. Preserving the good governance and sustainability. Supporting
excellent quality of archive management, services this policy, Bank Indonesia has maintained ISO
and regulation, Bank Indonesia also maintained 9001:2015 certification concerning Quality
ISO 9001:2015 Quality Management System Management Systems in the area of procurement
certification and ISO 30301:2019 Management since 2021.
System for Records certification.
41) Successful e-Catalogue implementation to

enhance the efficiency of goods and services
procurement
E-Catalogue implementation has enhanced the

effectiveness and efficiency of the procurement
process. The fulfilment of goods and/or services
through the e-Catalogue is primarily for regular
or repeat orders of general goods and/or services,
standardised and required in large quantities at Bank
Indonesia. After successful phase I e-Catalogue
implementation in 2021, Bank Indonesia developed
phase II of the e-Catalogue through application

Arrangement

05
BANK INDONESIA
BOARD OF
GOVERNORS AND
INSTITUTIONAL
ARRANGEMENT

Building of Cirebon
82 Laporan Kelembagaan Bank Indonesia 2022

Bank Indonesia Board Of Bank Indonesia
Bank Indonesia’s Appendix
Governors And Institutional Supervisory Board
Performance In 2022
Arrangement (Bsbi)
Laporan Kelembagaan Bank Indonesia 2022 83

BANK INDONESIA BOARD OF

GOVERNORS AND INSTITUTIONAL
ARRANGEMENT
B
ank Indonesia’s position as the central bank of Indonesia was mandated in
accordance with Article 23D of the 1945 Constitution. As the central bank
of the Republic of Indonesia, Bank Indonesia entered a new era when the
Bank Indonesia Act No. 23 of 1999 was enacted on 17th May 1999, which
has subsequently been amended several times, most recently by Act No. 4 of 2023
concerning Development and Strengthening of the Financial Sector (P2SK Act) on
12th January 2023. These laws confer the status and position of Bank Indonesia as
an independent public institution of the state administration in the execution of its
duties and authority, free from interference by the government and/or other parties.
Regarding accountability and transparency in the implementation of its duties and
authority, Bank Indonesia submits institutional performance reports to the The
House of Representatives of the Republic of Indonesia (DPR-RI) and the President
before publishing the reports to the public.
Bank Indonesia has three overarching goals, namely: (i) achieving rupiah stability, (ii)
maintaining payment system stability, and (iii) maintaining financial system stability
to support sustainable economic growth.
Bank Indonesia is led by a Board of Governors, comprising: the Governor, Senior

Deputy Governor and 4 (four) to 7 (seven) Deputy Governors. The current
composition of the Bank Indonesia Board of Governors consists of a Governor, Senior
Deputy Governor and 4 (four) Deputy Governors. The collective collegial Bank
Indonesia Board of Governors convenes Board of Governors Meetings (RDG) to
decide on principal and strategic matters. The RDG meeting is the highest decision-
making forum at Bank Indonesia and in line with its collective collegial format, each
decision is binding for all Members of the Board (ADG).
Maintaining its independence, Bank Indonesia is committed to prioritising the

principles of good and professional governance as mandated by law. As the
embodiment of good and professional institutional governance, Bank Indonesia
has maintained an Unqualified Opinion concerning its Annual Financial Statements
for 20 consecutive years. This is incontrovertible evidence of Bank Indonesia’s firm
commitment to financial management based on good governance principles, while
presenting relevant, accountable and transparent financial statements.

Arrangement
ABOUT BANK INDONESIA
Bank Indonesia is the central bank of Indonesia and a legal entity which has the authority to
perform legal actions. As a public legal entity, Bank Indonesia is authorised to stipulate legal
STATUS regulations and implement laws which are binding for the wider community in accordance
with its duties and authority. As a civil legal entity, Bank Indonesia may act for and on its own
behalf in or out of a court of law.
Bank Indonesia has three overarching goals, namely: (i) achieving rupiah stability, (ii)
maintaining payment system stability, and (iii) maintaining financial system stability to
GOALS support sustainable economic growth.
Rupiah stability is the stability of the Rupiah against goods and services and against the
currencies of other countries. Rupiah stability against goods and services is measured by
low and stable inflation. Meanwhile, Rupiah stability against other currencies is measured
by the volatility of the rupiah against the currencies of other countries.
Payment system stability encompasses the set of rules, institutions and mechanisms used to
transfer funds to fulfil the obligations arising from economic activity. Stability is reflected
in the implementation of a fast, convenient, affordable, secure and reliable payment system
as well as the availability of quality and trusted Rupiah currency fit for circulation, while
expanding access and upholding consumer protection.
Striving to maintain the stability of the financial system, Bank Indonesia coordinates in
synergy with other financial authorities to create and maintain a national financial system
that is resilient to internal and external shocks. This aims to ensure the financial system
can carry out the intermediation function and other financial services effectively, thus
contributing to national economic growth.
Seeking to achieve its goals, Bank Indonesia is authorised to: (i) determine and implement
monetary policy sustainably, consistently and transparently, (ii) regulate and maintain
DUTIES a highly available payment system, and (iii) formulate and implement macroprudential
policies.

VisiON
To become the foremost
digital central bank
that creates tangible
contribution to the
national economy and
be the best central bank
amongst emerging market
countries towards an
Advanced Indonesia
(Indonesia Maju).
Mission
1. To achieve and maintain Rupiah stability through 5. To engage in enhancing financial market deepening
effective monetary policy and Bank Indonesia policy in order to strengthen the effectiveness of Bank
mix; Indonesia policy and support national economic
financing;
2. To engage in maintaining financial system stability
through effective macroprudential policy in synergy 6. To engage in developing the sharia economy and
with microprudential policy by the Financial Services finance from the national level to the regional level;
Authority (OJK); and
3. To engage in developing digital economy and finance 7. To build a digital central bank in terms of the policies
through strengthening Bank Indonesia payment and institutional arrangements by strengthening
system policy in synergy with the Government and the organisation, human resources, governance and
other strategic partners policies; reliable information systems as well as a proactive
international role.
4. To support macroeconomic stability and sustainable
economic growth through achieving synergy
between the Bank Indonesia policy mix, Government
fiscal policy and structural reforms, as well as other
strategic policy partners;

Arrangement
BOARD OF GOVERNORS
Perry Warjiyo
Governor
Perry Warjiyo was reappointed incumbent Governor Islamic Financial Services Board (IFSB), Chairman of the
in accordance with Presidential Decree of the Republic Indonesian Economist Association (ISEI) and Chair of the
of Indonesia Number 38/P of 2023, dated 5th May Expert Council of the Islamic Economic Society (MES). In
2023, taking the oath of office on 24th May 2023 for the addition, Perry Warjiyo also represented Bank Indonesia
2023-2028 period. Previously, Perry Warjiyo served as and Indonesia during the ASEAN Chairmanship and the
the Governor of Bank Indonesia from 2018-2023 and G20 Finance Ministers and Central Bank Governors
Deputy Governor from 2013-2018. (FMCBG) Meeting, as well as in IMF, ASEAN, ASEAN+3,
Financial Stability Board (FSB), Islamic Development
Prior to his role as Deputy Governor, Perry Warjiyo also Bank (IsDB) and International Islamic Liquidity
held the position of Assistant Governor for Monetary, Management Corporation (IILM). In 2022, Perry Warjiyo
Macroprudential and International Policy after serving retained his position as an active lecturer at the Faculty
as Executive Director of the Economic Research and of Economics and Business (FEB) of Gadjah Mada
Monetary Policy Department of Bank Indonesia from University, while also being invited as a guest lecturer at
2009. Before returning to Bank Indonesia in 2009, Perry a number of universities in Indonesia and abroad.
Warjiyo was assigned as Executive Director for two years
in the International Monetary Fund (IMF), representing Perry Warjiyo has also authored and published books,
13 member countries under the auspices of the South- journals, and papers in various economic, monetary and
East Asia Voting Group (SEAVG) in Washington DC, USA. international publications. One of his books, “Central
Perry Warjiyo has enjoyed a long and brilliant career at Bank Policy: Theory and Practice” co-authored with Dr
Bank Indonesia since 1984, with a focus on economic Solikin M. Juhro, has gained national and international
research and monetary policy, international issues, recognition as an important reference in the formulation
organisational transformation and monetary policy of the central bank policy mix.
strategy, central banking education and research, as well
as foreign exchange and external debt management. Born in Sukoharjo in 1959, Perry Warjiyo earned his
bachelor’s degree from Gadjah Mada University in 1982
Perry Warjiyo is the current Chair of the Asian before receiving his master’s and doctoral degrees in
Consultative Council – Bank for International Settlements Monetary Policy and International Finance from Iowa
(ACC-BIS), Chairman of the Executive Committee of the State University, USA, in 1989 and 1991 respectively.

87
Foreword Summary AndChallenges
and Challenges Policy Response Transformation
BOARD OF GOVERNORS
Destry Damayanti
Senior Deputy Governor
Destry Damayanti was officially appointed as Senior British Ambassador to Indonesia from 2000 to 2003. Her
Deputy Governor of Bank Indonesia in accordance with career as an economist continued as the Chief Economist
Presidential Decree Number 74/P of 2019, dated 29th at Mandiri Securities and Bank Mandiri from 2005 to
July 2019, for a term of office from 2019-2024, taking the 2015, and consecutively as Executive Director of the
oath of office on 7th August 2019. In addition, Destry is Mandiri Institute. From 2014 to 2015, Destry served
currently an ex-officio Member of Bank Indonesia Board as Chairperson of the Economic Task Force under the
of Commissioners at the Indonesia Deposit Insurance auspices of the Ministry of State-Owned Enterprises. In
Corporation (LPS). Prior to her role as Senior Deputy 2015, Destry Damayanti was entrusted by the President
Governor of Bank Indonesia, Destry was a Member of of the Republic of Indonesia as Chairperson of the
the LPS Board of Commissioners from 2015-2019. Selection Committee for the Corruption Eradication
Commissions (KPK) Leaders from 2015-2019.
Destry Damayanti began her career as a researcher
and lecturer at the Faculty of Economics, University Born in Jakarta in 1963, Destry Damayanti earned a
of Indonesia from 1987-1990, before working in the Bachelor of Economics from the University of Indonesia
Ministry of Finance from 1992-1997. From 1997-2000, before receiving a Master of Science in the Field of
Destry Damayanti was an economist at Citibank before Regional Science from Cornell University, New York,
being assigned as a Senior Economic Adviser for the USA, in 1992.
Laporan Kelembagaan Bank

Bank Indonesia 2022
88 Bank Indonesia
Laporan Institutional
Kelembagaan Report 2022
Indonesia 2022
Bank Indonesia Board Of
of Bank Indonesia
Governors And Institutional
and Institutional Supervisory Board
Performance In
in 2022 Supervisory Board
Arrangement (Bsbi)
Doni Primanto Joewono

Deputy Governor
In accordance with Presidential Decree No. 78/P of in Solo (2012) and DKI Jakarta (2017). He also initiated
2020, dated 30th July 2020, Doni Primanto Joewono was various activities to stimulate regional investment
sworn in as Bank Indonesia Deputy Governor and took and empower the pesantren (Islamic boarding school)
the oath of office on 11th August 2020. economy. Prior to his appointment as Deputy Governor
of Bank Indonesia, Doni Primanto Joewono served as
Commencing his career at Bank Indonesia in 1991, Head of the Human Resources Department in 2020.
Doni Primanto Joewono’s first assignment was in
the Monetary Management Department, where Born in Surabaya in 1965, Doni Primanto Joewono
he was actively involved in monetary management completed his formal education with a Bachelor of
system development, including preparations for Development Economics from Sebelas Maret University
Government Bond issuances as well as development (UNS) in 1988 and a Master of Administration and Human
of the International Transaction Reporting System. Resource Development from the University of Indonesia
After serving as a Senior Economic Researcher (Deputy (UI) in 2004. He also completed SESPIBI, Bank Indonesia’s
Director) at the Bank Indonesia Representative Office in highest leadership program in 2012 and the National
London (2005-2008), he continued his career by leading Resilience Institute Education Program in 2018. He has
the Bank Indonesia Representative Offices in Solo, DKI graduated from various executive leadership programs,
Jakarta and West Java. During this time, alongside Head as well as monetary and financial market competence
of Regional Governments, he was acknowledged and development programs organised by international
awarded for Best Regional Inflation Task Force (TPID) organisations, including the IMF and SEACEN.
Laporan Kelembagaan
Bank Indonesia Bank
Bank Indonesia 2022
Report 2022
Kelembagaan Indonesia 2022 89
BOARD OF GOVERNORS
Juda Agung
Deputy Governor
Juda Agung was officially inaugurated as Deputy and macroprudential policy, strategic management as
Governor of Bank Indonesia in accordance with well as Bank Indonesia representative offices. As an
Presidential Decree Number 147/P of 2021, dated economist, Juda Agung has published several articles
24th December 2021, and took the oath of office on 6th in the monetary, financial and banking fields in various
January 2022 for a tenure until 2027. international journals, including Applied Economics
and the Review of International Economics. Juda Agung
Prior to his appointment as Deputy Governor of recently published a book, entitled Macroprudential
Bank Indonesia, Juda Agung served as Assistant Policy in Indonesia: Concepts, Frameworks and
Governor in charge of Financial System Stability and Implementation.
Macroprudential Policy at Bank Indonesia. Previously,
Juda Agung was appointed as Executive Director of Born in Pontianak in 1964, Juda Agung completed his
the International Monetary Fund (IMF) ASEAN and the undergraduate education in Agricultural Technology at
Pacific, in Washington DC, United States, representing the Bogor Agricultural Institute in 1987 before earning
13 member countries. a master’s degree in Money, Banking and Finance
from the University of Birmingham in 1995. Juda
Commencing his career at Bank Indonesia in 1991, Juda subsequently extended his postgraduate education
Agung has extensive experience through a number at the University of Birmingham, receiving a PhD in
of secondments, particularly in terms of monetary Economics in 1999.
90 Bank Indonesia
Bank Indonesia 2022
of Bank Indonesia
Bank Indonesia’s
Indonesia‘s Bank Indonesia Appendix
Performance In
Arrangement (Bsbi)
Aida S. Budiman
Deputy Governor
Aida S. Budiman was officially inaugurated as Deputy Aida S. Budiman is also actively involved with
Governor of Bank Indonesia in accordance with various memberships of various inter-ministerial
Presidential Decree Number 147/P of 2021, dated 24th and institutional forums as well as professional
December 2021, and took the oath of office on 6th January organisations, while teaching at education and
2022 for a term of office until 2027. training sessions organised by Bank Indonesia and the
Ministry of Foreign Affairs. Internationally, Aida S.
Beginning her career at Bank Indonesia in 1991, prior to her Budiman often represents Bank Indonesia at various
appointment as Deputy Governor of Bank Indonesia, Aida S. international conferences and working groups to
Budiman was entrusted as Assistant Governor overseeing formulate international policy bilaterally, regionally
strategic policies in the monetary sector, coordinating the and multilaterally. Furthermore, Aida S. Budiman was
Bank Indonesia policy mix and synergising with the national also assigned as Alternative Executive Director (AED)
policy mix for the 2020-2022 period. This position was held of the South-East Asia Voting Group (SEAVG), IMF
after her appointment as Executive Director of the Economic Washington DC, USA.
and Monetary Policy Department from 2018-2022 and
Head of the International Department from 2014-2018. Born in Bogor in 1965, Aida S. Budiman completed
While leading Economic and Monetary Policy Department, her undergraduate education in Socio-Economic
Aida S. Budiman also played a key role in strengthening the Agribusiness from Bogor Agricultural University in
Bank Indonesia policy mix framework, determining the 1987 before earning a master’s degree in Economics
priority sectors to support national economic recovery, from the University of Southern California in 1996. Aida
strengthening the role of Bank Indonesia representative S. Budiman subsequently extended her postgraduate
offices in terms of supporting economic and regional education at Claremont Graduate University, receiving
growth, as well as expanding the role of digitalisation for a PhD in Economics in 2001.
food-based MSMEs to support price stability.
Bank Indonesia
Bank Indonesia 2022 91
BOARD OF GOVERNORS
Filianingsih Hendarta
Deputy Governor
Filianingsih Hendarta was officially appointed Deputy Macroprudential Policy Department from 2015-2019
Governor of Bank Indonesia in accordance with and the Monetary Management Department from 2013-
Presidential Decree No. 21/P of 2023, dated 15th March 2015.
2023, for a tenure from 2023-2028 and took the oath of
office on 18th April 2023. Filianingsih Hendarta is actively involved in various
domestic and international inter-ministerial and
Beginning her career in Bank Indonesia in 1986, prior institutional forums, including Preparations for Financial
to her appointment as Deputy Governor of Bank Sector Regulations and Institutional Arrangements,
Indonesia, Filianingsih Hendarta was entrusted as Accelerating the Digital Economy and Finance and
Assistant Governor overseeing the Payment System Inter-ministerial Electronification, as well as various
who led the transformation of the national payment internal committees at Bank Indonesia. Internationally,
system. Filianingsih Hendarta was also a pivotal figure Filianingsih Hendarta regularly represents Bank
who oversaw the launch of Project Garuda to explore Indonesia at various forums, including the G20, BIS, FSB,
the high-level design of Central Bank Digital Currency IMF, World Bank, ECB, and EMEAP.
(CBDC) in Indonesia, known as the Digital Rupiah, and
led implementation of the Indonesia Payment System Born in Surabaya in 1963, Filianingsih Hendarta
Blueprint (BSPI) 2025 to accelerate transformation and completed her undergraduate education in law at
integration of the digital economy and finance towards Airlangga University before receiving a master’s degree
increasing economic and financial inclusion. in economics and finance from Boston University,
USA in 1992. Filianingsih Hendarta was also actively
Filianingsih Hendarta has amassed more than 36 years involved as Central Administrator of the Monetary
of experience in nearly all sectors of Bank Indonesia, and Macroprudential Focus Group of the Indonesian
leading various national and international projects, and Economist Association (ISEI) from 2018-2021.
representing Bank Indonesia at various international Currently, Filianingsih Hendarta serves as Deputy Chair
forums. For her dedication and achievements, Filianingsih 1 of the Honorary Board of the Airlangga University
Hendarta was entrusted as Head of the Payment System Management of Alumni Association for the period of
Policy Department from 2019-2022 after leading the 2021-2025.
92 Bank Indonesia
Bank Indonesia 2022
of Bank Indonesia
Performance In
Arrangement (Bsbi)
Dody Budi Waluyo

Deputy Governor
Term of Office completed on 17th April 2023
Dody Budi Waluyo was appointed Deputy Governor and organisations, such as G20, BIS, IMF, EMEAP, ASEAN
of Bank Indonesia based on Presidential Decree No. and ASEAN+3. From 2000-2003, Dody Budi Waluyo was
69/P of 2018 for a term of office from 2018-2023. In also Advisor to the Executive Director of the South-East
the following year, he was entrusted as the Ex-officio Asia Voting Group (SEAVG), IMF Washington DC, USA.
Member of OJK Board of Commissioners from Bank
Indonesia in accordance with Presidential Decree No. Dody Budi Waluyo has also held several key leadership
82/P for a term of office from 2019-2021. positions for Indonesia at international forums. During
Indonesia’s G20 Presidency in 2022, Dody Budi Waluyo
Beginning his career in 1988, his vast experience has been served as Central Bank Deputy for the Finance Track
earned through various assignments, particularly in the and Chairman of the G20 Task Force at Bank Indonesia.
monetary sector, namely monetary research and policy, During Indonesia’s ASEAN Chairmanship in 2023, Dody
monetary operations, economic and monetary statistics, Budi Waluyo was entrusted as Central Bank Deputy for
foreign reserves management, and international the Finance Track.
cooperation.
Born in Jakarta in 1961, Dody Budi Waluyo earned his
Dody Budi Waluyo was actively involved in various Bachelor of Economics degree from the University of
memberships of inter-ministerial and institutional Indonesia in Development Studies in 1980. Dody Budi
forums, mainly to tackle macroeconomic, balance of Waluyo continued his postgraduate education at the
payment, monetary, inflation, and statistical issues. University of Colorado, USA, and earned his Master
Some of the strategic positions held include Secretary of Business Administration and Finance degree in
of Working Group (WG 3) for National Economic Policy 1994. He graduated the Regular Education Program of
Package and Deputy Chairman of the Central Inflation Lemhanas in 2010. Currently, Dody Budi Waluyo serves
Control Team. At the international level, Dody Budi on the Central Administrator of Indonesian Economist
Waluyo was also active in several working groups related Association (ISEI) and Indonesian Association of Islamic
to monetary and financial issues at international forums Economists (IAEI).
Bank Indonesia
Organisational Structure
of BANK INDONESIA
As of 31st December 20221)
BANK INDONESIA BOARD OF GOVERNORS
GOVERNOR
SENIOR DEPUTY GOVERNOR
4-7 DEPUTY GOVERNORS
PAYMENT SYSTEM AND

MONETARY MACROPRUDENTIAL RUPIAH CURRENCY
MANAGEMENT
1. Economic and Monetary 1. Macroprudential Policy 1. Payment System Policy

Policy Department Department Department
2. Monetary Management 2. Financial System 2. Payment System
Department Surveillance Department Management Department
3. Reserve Management 3. MSME Development and 3. Currency Management
Department Consumer Protection Department
4. Financial Market Department 4. Currency Management
Development Department Centre, Data Centre and
5. Sharia Economy and Finance Business Resumption Site
Department Development Office3)
Notes:
1) As of 1st February 2023, some adjustments are made to the organisational structure of Bank Indonesia
2) Committees are supporting organs at Bank Indonesia tasked with assisting the Board of Governors decide principle and strategic policies
3) Temporary Special Work Unit

Arrangement
Committees 2)
BoG Expert Staff
POLICY ORGANISATIONAL OFFICE

SUPPORT SUPPORT NETWORK
1. International Department 1. Strategic Management and Domestic Representative Offices

2. Statistics Department Governance Department 1. Regional Department (located at
3. Banking Services, Licensing 2. Legal Affairs Department Head Office)
and Treasury Operations 3. Human Resources 2. 5 Coordinator Representative
Department Department Offices at Provincial Level
4. Report Management and 4. Information Systems 3. 29 Representative Offices at
Compliance Department Management Department Provincial Level
5. Risk Management 5. Finance Department 4. 12 Representative Offices at
Department 6. Strategic Procurement City/Regency Administrative
6. Communication Department Department Level
7. Internal Audit Department
8. Logistics and Facilities Overseas Representative Offices
Management Department 1. Bank Indonesia Representative
9. Bank Indonesia Institute Office New York
10.Information Systems 2. Bank Indonesia Representative
Transformation Office3) Office London
3. Bank Indonesia Representative
Office Tokyo
Office Singapore
Office Beijing

MAP OF BANK INDONESIA

REPRESENTATIVE OFFICE
Aceh Province
Lhokseumawe
North Sumatra Province
North Kaliman
Provin
Pematang Siantar
Riau Province
Sibolga
Riau Islands
Province West Kalimantan Province
East Kalimantan
West Sumatra Province Province
Bangka Belitung Balikpapan

Jambi Province Islands Province Central Kalimantan
Province
South
Bengkulu South Sumatra Province Kalimantan
Province Province
Lampung Province KALIMANTAN
Special Capital COORDINATION AREA
SUMATRA COORDINATION AREA
Region of Jakarta
Central Java Province
Banten
Province Cirebon Tegal East Java
Solo
Province
West Java Purwokerto
Malang Bali Province
Province Jember
Kediri
Tasikmalaya
Special Region of
Yogyakarta West
Nusa Tenggara
JAVA COORDINATION AREA
Province
Coordinator Office for Sumatra Coordinator Office for Java Region Coordinator Office for Kalimantan
Region and Representative Office and Representative Office for East Region and Representative Office for
for North Sumatra Province Java Province South Kalimantan Province
• Aceh Province • West Java Province • West Kalimantan Province

• West Sumatra Province • Banten Province • East Kalimantan Province
• Riau Islands province • Special Region of Yogyakarta • Central Kalimantan Province
• Riau Province • Central Java Province • North Kalimantan Province
• South Sumatra Province • Special Capital Region of Jakarta • Balikpapan
• Bengkulu Province • Tasikmalaya
• Lampung Province • Cirebon
• Jambi Province • Tegal
• Bangka Belitung Province • Purwokerto
• Lhokseumawe • Solo
• Pematang Siantar • Malang
• Sibolga • Kediri
• Jember

Arrangement
Overseas Representative
Offices
• London
• New York
• Singapura
• Tokyo
• Beijing
ntan
nce
North Sulawesi
Province
North Maluku Province
Gorontalo Province
Central Sulawesi
Province
West Papua Province
West Sulawesi
Province
Maluku Province Papua Province
Southeast Sulawesi
Province
South Sulawesi SULAMPUA COORDINATION AREA

Province
BALI NUSTRA COORDINATION AREA
East Nusa Tenggara Province
Coordinator Office for Bali Nustra Coordinator Office for Sulampua

Region and Representative Office for Region and Representative Office
Bali Province for South Sulawesi Province
• East Nusa Tenggara Province • North Sulawesi Province

• West Nusa Tenggara Province • Central Sulawesi Province
• Papua Province
• Maluku Province
• Southeast Sulawesi Province
• Gorontalo Province
• West Sulawesi Province
• North Maluku Province
• West Papua Province

Bank Indonesia Annual

Financial Statements 2022
T
he Bank Indonesia Financial Statements (LKBI) are a form of Bank
Indonesia management accountability to achieve the goals mandated in
prevailing laws and regulations. The Bank Indonesia Financial Statements
present financial information, including financial positions, revenues, expenditures,
notes on the financial statements and additional information as required. The Bank
Indonesia Financial Statements compiled for the 31st December position and for
the accounting period from 1st January until 31st December are known as the Bank
Indonesia Annual Financial Statements (LKTBI).
Bank Indonesia received an Unqualified Opinion from the Audit Board of the
Republic of Indonesia (BPK) for the Bank Indonesia Annual Financial Statements
2022. Bank Indonesia has now received an unqualified opinion for the past 20
consecutive years, demonstrating Bank Indonesia’s unwavering commitment
to maintaining accountability and compliance as mandated in Article 58 of the
Bank Indonesia Act No. 23 of 1999, most recently amended by Act No. 4 of 2023
concerning Development and Strengthening of the Financial Sector.

Arrangement
20
YEARS
Consecutive Years Of Unqualified
Opinions For The Bank Indonesia Annual
Financial Statements
Table 01. Statement of Financial Position
in millions of Rupiah
2022 2021
ASSETS
1. Gold 71,380,147 65,644,171
2. Financial Assets Related to Monetary Policy Implementation 3,459,659,591 3,160,910,897
3. Receivables from the IMF 131,990,362 127,146,643
4. Claims 87,154,022 98,917,780
5. Other Assets 29,857,268 29,305,625
TOTAL ASSETS 3,780,041,390 3,481,925,116
LIABILITIES
1. Currency in Circulation 1,026,501,006 959,829,854
2. Financial Liabilities Related to Monetary Policy Implementation 1,816,148,138 1,688,008,160
3. Counterpart of Special Drawing Rights Allocated by the IMF 133,544,172 128,607,267
4. Financial Liabilities to Government 437,620,160 281,347,026
5. Other Liabilities 17,798,985 18,976,700
6. Revaluation Reserve 68,837,153 147,327,143
7. Capital 3,726,349 3,726,349
8. Accumulated Surplus (Deficit) 275,865,427 254,102,617
8.1. General Reserves 224,392,159 205,119,038
8.2. Statutory Reserves 29,710,458 29,808,036
8.3. Current Year Surplus (Deficit) 21,762,810 19,175,543
TOTAL LIABILITIES 3,780,041,390 3,481,925,116

Table 02. Statement of Surplus Deficit
in millions of Rupiah
2022 2021
REVENUES
1. Monetary Policy Implementation 119.610.026 94.487.701
2. Payment System Services 200.372 188.257
3. Macroprudential Supervision 6.224 3.347
4. Income from Loans and Financing 92.969 104.183
5. Other Income 1.798.663 1.601.871
TOTAL REVENUES 121.708.254 96.385.359
EXPENSES
1. Monetary Policy Implementation 37.103.192 28.441.393
2. Payment System Services 4.364.484 3.828.021
3. Macroprudential Supervision 559.198 424.013
4. Financial Relationships with the Government 36.869.594 26.363.212
5. General and Administrative Expenses 13.942.433 11.843.787
TOTAL EXPENSES 92.838.901 70.900.426
SURPLUS (DEFICIT) BEFORE TAXES 28.869.353 25.484.933
TAXES (7.106.543) (6.309.390)
SURPLUS (DEFICIT) AFTER TAXES 21.762.810 19.175.543

Arrangement
Compared with conditions in 2021, the Bank Indonesia On the other hand, decreases were also recorded on the
Annual Financial Statements (LKTBI) 2022 recorded liability side in the form of:
Total Assets/Liabilities of Rp3,780.04 trillion (up 1) Securities Issued and Debt in Rupiah (including
Rp298.11 trillion or 8.56%), Surplus Before Taxes of futures and placements in Rupiah in line with liquidity
Rp28.87 trillion (up Rp3.3 trillion or 13.28%), Taxes of normalisation policy by gradually raising the reserve
requirement to 9%).
Rp7.10 trillion (up Rp0.8 trillion or 12.63%) and Surplus
2) Revaluation reserve of financial instruments due to
After Taxes of Rp21.76 trillion (up Rp2.59 trillion or
higher yields in 2022.
13.49%). The ratio of capital to monetary liabilities stood
at 8.03% (down 0.17%). The Rp25.3 trillion increase recorded in terms of revenues
in 2022 compared with 2021 primarily stemmed from:
The Rp298.1 trillion gain recorded on the asset side 1) Exchange rate differential in line with Rupiah
in 2022 compared with conditions in 2021 primarily depreciation.
stemmed from Securities and Claims in Rupiah in the 2) Interest Income from Health and Humanitarian
form of buying government securities (SBN) on the Budgets for Covid-19 (in line with increasing
primary market in accordance with the 1st and 3rd Joint purchases of state bonds in accordance with KB III)
Decrees (KB) as follow-up actions to Act No. 2 of 2020. and Interest Income from SBN purchases for exchange
On the other hand, a decline on the asset side was also rate stabilisation measures.
On the other hand, a decline was recorded in terms of
recorded in terms of Claims on Central Government due
income on Financial Asset Transactions.
to principal and interest payments on SU-002, SU-004,
SU-007, and SRBI-01.
The Rp2.5 trillion increase in Expenses in 2022 compared
with conditions in 2021 primarily stemmed from:
The Rp298.1 trillion gain recorded on the liability side 1) Interest Expenses on Monetary Operations.
primarily originated from: 2) Remuneration of Government Demand Deposits in
1) Financial Liabilities to Government in the form of an line with increases in government demand deposits
increase in demand deposits denominated in Rupiah and the remuneration reference rate.
and a foreign currency, primarily from tax revenues, 3) Burden-sharing cost of government securities issued
sales of domestic securities, sales of global bonds and for national economic recovery and health in line with
drawing on external debt. increase in state bonds from KB III and reference rate
2) Financial liabilities for monetary policy (3-month weighted average BI RR).
implementation, in the form of higher reserve 4) HR, Organisational and Logistics Expenses.
balances in Rupiah held at Bank Indonesia due to the
incremental hikes in the reserve requirements.

06
BANK INDONESIA
SUPERVISORY BOARD

Building of Lampung Province

102

103
BANK INDONESIA
SUPERVISORY BOARD
T
he Bank Indonesia Supervisory Body (BSBI) was established in
accordance with the Bank Indonesia Act, most recently amended by
Act No. 4 of 2023 concerning Development and Strengthening of the
Financial Sector, in order to assist the supervision function of The House
of Representatives of the Republic of Indonesia (DPR-RI). In the execution of
its duties, BSBI is directly responsible to the DPR-RI and independent from the
organisational structure of Bank Indonesia.
The BSBI function in terms of assisting the supervision function of the DPR-
RI aims to increase institutional performance, accountability, independence,
transparency and credibility at Bank Indonesia. In accordance with the
mandate stipulated in prevailing laws and regulations, in 2022 the purview of
the BSBI function included a review of the Bank Indonesia Annual Financial
Statements, operational budget, investment budget and policymaking
procedures regarding operational activities and asset management at Bank
Indonesia, as well as other duties assigned by Commission XI of the DPR-RI.
The function and duties of BSBI do not include evaluating the policies issued
by Bank Indonesia. BSBI regularly reports to the DPR-RI on a quarterly basis
or as requested by the DPR-RI. In 2022, BSBI conducted four reviews and
submitted 56 recommendations.
The composition of BSBI membership for the period 2020-2023 was selected
by DPR-RI based on fit and proper tests conducted in 2020 as follows:
Muhammad Edhie Purnawan as Chairman and member, as well as Mohamad
Khusaini, Muhammad Nawir Messi, Nunung Nuryartono and Nury Effendi as
members.

Bank Indonesia’s Bank Indonesia
Governors and Institutional Appendix
Arrangement
MEMBER PROFILES
BANK INDONESIA SUPERVISORY BOARD
2020-2023
Born in Yogyakarta in 1968, Muhammad Edhie
Purnawan earned his bachelor’s degree at Gadjah
Mada University (UGM), MA at Monash University, and
PhD at the University of Melbourne in Monetary and
Financial Economics. Muhammad Edhie Purnawan has
also completed short courses in leadership at Harvard
University, Oxford University, and London School of
Economics and Political Science.
Muhammad Edhie Purnawan was appointed as a BSBI

member from 2017-2020 (first tenure) and then appointed
as Chairman of BSBI from 2020-2023 (second tenure).
In addition to teaching at the Faculty of Economics and
Business of UGM, he also taught at Pforzheim University
and Osnabrück University in Germany, guest lectured
Muhammad Edhie Purnawan at Cambridge University and Harvard University, and
gave a sharing session at New York University (NYU).
Muhammad Edhie Purnawan is also active as the Head of
International Cooperation in the Indonesian Economist
Association (ISEI), Advisory Board of KADIN Indonesia,
Expert Board of the Sharia Economic Community,
Advisory Board of Neuroleadership Indonesia, member
of the Statistics Society Forum, Head of PP Kafegama
in PR and Institutional Arrangements, President of
Kafegama 1986, and Co-Chair of Think Tank 20 (T20) on
the TF9 G20 in Global Cooperation for SDG Financing.
Born in Pasuruan in 1971, Mohamad Khusaini is a

Professor at the Faculty of Economics and Business of
Brawijaya University. Mohamad Khusaini completed his
doctorate education at Brawijaya University in Public
Finance and completed his master’s education at Andrew
Young School of Policies Studies, Georgia State University,
USA. He earned his Master of Public Administration and
bachelor’s degree in economics from Brawijaya University.
He also completed the Oxford Executive Leadership
Program from Oxford University, UK.
Mohamad Khusaini was appointed a BSBI member

from 2020–2023 and he is also active in professional
organisations in a fiscal and regional focus group at the
Central Administration of the Indonesian Economist
Association (PP ISEI). In the research field, Mohamad Mohamad Khusaini
Khusaini is qualified in Public Policy and Finance, Public
Budgeting and Fiscal Management, and Macroeconomics.

Born in Makassar in 1957, Muhammad Nawir Messi

earned his master’s and diploma from Australian
National University, Australia, and bachelor’s degree
in Agricultural Socio-Economics from Hasanudin
University, Indonesia.
Muhammad Nawir Messi was appointed a BSBI member

for 2020-2023. Previously, Muhammad Nawir Messi
served as Chairman of the Indonesia Competition
Commission (KPPU), Founder and Chairman of ASEAN
Expert Group on Competition and Asian High-Level
Meeting on Competition, Founder and Managing
Director of the Institute for Development of Economics
and Finance (INDEF), as well as consultant and researcher
in various international institutions, such as the World
Muhammad Nawir Messi Bank, Foundation for Advance Studies on International
Development - Tokyo, Asian Development Bank, United
Nation Conference on Trade and Development, Centre
for Policy and Implementation Studies – a cooperation
agency between Harvard Institute for International
Development and the Government of Indonesia. He also
teaches in the Postgraduate Program of the University of
Indonesia.
Born in Semarang in 1969, Nunung Nuryartono

earned his doctorate from George August University
of Gottingen, Germany, after earning his master’s and
bachelor’s degree from Bogor Agriculture Institute. In
2019, Nunung Nuryartono was appointed as Professor in
Development Economics.
Nunung Nuryartono was appointed a BSBI member for

2020-2023. In addition, Nunung Nuryartono is also active
as a member of the Royal Economics Society, Indonesian
Economist Association, Indonesian Agricultural Economic
Association, Australian Agricultural and Resource,
German Economic Association, Research Group on
Development Economics, Royal Economics Society,
and Senior Fellow at the Australia-Indonesia Centre.
Nunung Nuryartono has frequently been acknowledged Nunung Nuryartono
in various academic and professional fields.
106 Bank Indonesia

Bank Indonesia 2022
Arrangement
Born in Solo in 1956, Nury Effendi earned a PhD in

Economics from the University of Oklahoma, a Master
of Arts from Ohio State University, USA, a bachelor’s
degree in Economics and Development Studies from
the Faculty of Economics, Padjadjaran University, and
a baccalaureate degree in Geological Engineering from
Bandung Institute of Technology.
Nury Effendi was appointed a BSBI member for 2020-

2023. Nury effendi is a professor at Padjadjaran
University. He is also active in national and international
academic activities, including as a member of the Regional
Economist Forum, Fiscal Policy Agency (BKF), Ministry of
Finance of the Republic of Indonesia, Dean of the Faculty
of Economics and Business, Padjadjaran University, and
Nury Effendi President of the Association of Faculty of Economics and
Business Indonesia (AFEBI).
Bank Indonesia
APPENDIX

Building of Southeast Sulawesi Province
108

109
List of Bank Indonesia Policies and Regulations
List of Bank Indonesia

List of Bank Indonesia Policies in 2022
Regulations in 2022
January
Bank Indonesia decided to hold the BI 7-Day Reverse Repo Rate Bank Indonesia promulgated:
(BI7DRR) at 3.50%, while maintaining the Deposit Facility (DF) rate at 1. Bank Indonesia Regulation (PBI)
2.75% and the Lending Facility (LF) rate at 4.25%. No. 24/1/PBI/2022 concerning
The direction of the Bank Indonesia policy mix in 2022 was as follows: the Total Amount and Face Value
1. Monetary policy in 2022 will focus on maintaining stability, while of Rupiah Currency Destroyed in
mitigating the global impact of policy normalisation in advanced 2021.
economies, the US Federal Reserve in particular. 2. Bank Indonesia Regulation (PBI)
a. Strengthening Rupiah exchange rate policy to maintain exchange No. 24/2/PBI/2022 concerning
rate stability in line with economic fundamentals and market Bank Transactions with Bank
mechanisms. Indonesia to Support Local
b. Normalising liquidity policy, while safeguarding the banking Currency Settlement
industry’s ability to extend financing to the corporate sector
and buy SBN to fund the State Revenue and Expenditure Budget
(APBN) as the ratio of liquid assets to deposits is currently high at
35.12%. Normalisation will be achieved by gradually increasing
rupiah reserve requirements for conventional commercial banks
from the current level of 3.5% as follows:
1) 150bps increase to 5.0%, with a daily requirement of 1.0% and
average requirement of 4.0%, effective from 1st March 2022
average requirement of 5.0%, effective from 1st June 2022
average requirement of 5.5%, effective from 1st September
2022
c. Normalising liquidity policy by gradually increasing Rupiah reserve
requirements for sharia banks and sharia business units from the
current level of 3.5% as follows:
average requirement of 3.0%, effective from 1st March 2022
average requirement of 3.5%, effective from 1st June 2022
average requirement of 4.0%, effective from 1st September
2022
d. Providing reserve requirement remuneration of 1.5% for
conventional commercial banks, sharia banks and sharia business
units meeting the Rupiah and average reserve requirements
referred to in points b and c.

Arrangement

Regulations in 2022
2. Strengthening the accommodative macroprudential policy stance in
2022 to revive bank lending to the corporate sector and drive the national
economic recovery, while maintaining financial system stability.
a. Offering incentives for banks disbursing financing to priority sectors
and inclusive financing and/or banks achieving the Macroprudential
Inclusive Financing Ratio (RPIM) target in the form of a 100bps
reduction in the daily reserve requirement, effective from 1st March
2022
b. Strengthening implementation of the Macroprudential Inclusive
Financing Ratio (RPIM), primarily through bank commitment to the
RPIM target, based on the expertise and business models available.
c. Maintaining accommodative macroprudential policy by holding: (a)
the Countercyclical Capital Buffer (CCyB) at 0%, (b) Macroprudential
Intermediation Ratio (MIR) in the 84-94% range with a lower
disincentive parameter of 84% from 1st January 2022, and (c)
Macroprudential Liquidity Buffer (PLM) at 6% with repo flexibility of
6% and the sharia PLM at 4.5% with repo flexibility of 4.5%.
d. Strengthening prime lending rate (SBDK) transparency in the banking
industry with a focus on interest rate spread by bank group.
3. Accelerating payment system digitalisation to stimulate economic
recovery, particularly in terms of household consumption, while advancing
an inclusive and efficient economy and finance by:
a. Expanding QRIS uptake through: (i) implementation of a strategy to
attract 15 million new QRIS users in 2022 via collaboration with the
industry, government ministries/agencies and the community, (ii)
expansion of QRIS features, (iii) preparation of business models and the
technical aspects of cross-border QRIS implementation with Malaysia.
b. Increasing the number of participants, expanding the services
and garnering greater acceptance of BI-FAST for more efficient
transactions between banks and members of the public.
c. Intensifying the electronification program through: (i) social
aid program (bansos) digitalisation, (ii) electronification of local
government services, particularly the acceleration and expansion
of regional digitalisation (P2DD), (iii) integration of different
transportation modes.
d. Safeguarding the availability of quality Rupiah currency fit for
circulation throughout the territory of the Republic of Indonesia by
strengthening the digitalisation strategy and expanding currency
distribution, including the Sovereign Rupiah Expedition Program
(Program Ekspedisi Rupiah Berdaulat) in outer, frontier and remote (3T)
regions, while expanding the Rupiah Love, Pride and Understanding
Movement (Cinta Bangga dan Paham (CBP) Rupiah).
4. Accelerating foreign exchange market deepening to support Rupiah
exchange rate stability, while expanding the availability of hedging
instruments and promoting international trade and investment.


Regulations in 2022
a. Implementing regulatory reform of the domestic foreign exchange
market, primarily focusing on: (i) relaxing the threshold on spot
transactions with an underlying from USD25,000 per month to
USD100,000 per month, (ii) developing a non-US dollar reference rate
against the Rupiah as a fixing rate for derivative transactions to support
hedging activity, (iii) standardising the instruments to support transaction
digitalisation through the Electronic Trading Platform (ETP) and Central
Counterparty (CCP).
b. Expanding the use of Local Currency Settlement (LCS) through
socialisation activities targeting the banking industry, corporate sector
and other potential users in cooperation with relevant institutions during
January and February 2022.
2. Strengthening policy for an inclusive and green economy and finance,
particularly on the credit demand side, to support a sustainable economic
recovery through MSME development and the empowerment of low-
income individuals to level up MSMEs and sharia businesses, while
strengthening Bank Indonesia’s green and institutional policies to support
the transition towards a low-carbon economy.
3. Strengthening international policy by expanding cooperation with other
central banks and international organisations, promoting trade and
investment and ensuring the success of six priority agendas in the Finance
Track in conjunction with the Ministry of Finance during Indonesia’s G20
Presidency in 2022.
Bank Indonesia will also continue strengthening policy coordination with the
Government and Financial System Stability Committee (KSSK) to accelerate
the vaccination rollout and reopen economic sectors, facilitate fiscal and
monetary coordination as well as revive lending to the corporate sector
and other priority sectors, while maintaining macroeconomic and financial
system stability and driving the national economic recovery.

Arrangement

Regulations in 2022
February
Bank Indonesia decided to hold the BI 7-Day Reverse Repo Rate (BI7DRR) Bank Indonesia promulgated:
at 3.50%, while maintaining the Deposit Facility (DF) rate at 2.75% and the 1. Bank Indonesia Regulation
Lending Facility (LF) rate at 4.25%. (PBI) No. 24/3/PBI/2022, as
the amendment to PBI No.
Bank Indonesia optimised its policy mix to maintain stability and support 23/13/PBI/2021 concerning
economic recovery momentum through the following policy measures: the Macroprudential Inclusive
1. Strengthening exchange rate policy to maintain Rupiah stability in line Financing Ratio (RPIM) for
with market mechanisms and economic fundamentals. Conventional Commercial Banks,
2. Normalising liquidity policy, as announced on 20th January 2022, via the Sharia Banks and Sharia Business
following adjustments to rupiah reserve requirements: Units.
a. Incrementally raising the rupiah reserve requirement for conventional 2. Bank Indonesia Regulation (PBI)
commercial banks from the current average requirement of 3.0% and No. 24/4/PBI/2022, as the fourth
daily requirement of 0.5% as follows: amendment to PBI No. 20/3/
1) From 1st March 2022, Bank Indonesia raised the reserve PBI/2018 concerning Minimum
requirement by 1.5% to 5.0%, calculated fully as an average. Banks Reserve Requirements in Rupiah
fulfilling RR obligations will receive 1.5% remuneration on the RR and a Foreign Currency for
based on 4.0% of deposits. Conventional Commercial Banks,
2) From 1st June 2022, Bank Indonesia raised the reserve requirement Sharia Banks and Sharia Business
by 1.0% to 6.0%, calculated fully as an average. Banks fulfilling RR Units.
obligations will receive 1.5% remuneration on the RR based on 5.0% 3. Board of Governors Regulation
of deposits. (PADG) No. 21/4/PADG/2022,
3) From 1st September 2022, Bank Indonesia raised the reserve as the second amendment to
requirement by 0.5% to 6.5%, calculated fully as an average. Banks PADG No. 21/18/PADG/2019
fulfilling RR obligations will receive 1.5% remuneration on the RR concerning the Implementation of
based on 5.5% of deposits. National Standard Quick Response
b. Incrementally raising the rupiah reserve requirement for sharia banks and Code for Payments.
business units from the current average requirement of 3.0% and daily 4. Board of Governors Regulation
requirement of 0.5% as follows: (PADG) No. 24/2/PADG/2022
1) From 1st March 2022, Bank Indonesia raised the reserve requirement concerning Cross Currency
by 0.5% to 4.0%, calculated fully as an average. Banks fulfilling RR Repurchase Agreement
obligations will receive 1.5% ‘athaya on the RR based on 3.0% of Transactions for Securities
deposits. in Rupiah against the Ringgit
between Banks and Bank
Indonesia to Support Local
Currency Settlement.


Regulations in 2022
2) From 1stJune 2022, Bank Indonesia raised the reserve
requirement by 0.5% to 4.5%, calculated fully as an average.
Banks fulfilling RR obligations will receive 1.5% ‘athaya on the
RR based on 3.5% of deposits.
3) From 1st September 2022, Bank Indonesia raised the reserve
requirement by 0.5% to 5.0%, calculated fully as an average.
Banks fulfilling RR obligations will receive 1.5% ‘athaya on the
RR based on 4.0% of deposits.
3. Providing incentives for banks disbursing loans/financing to priority
sectors and MSMEs and/or achieving the RPIM target in the form of
a 1% reduction in the average rupiah reserve requirement, from 1st
March 2022.
4. Strengthening prime lending rate (SBDK) transparency in the banking
industry with a focus on interest rate spread against neighbouring
countries.
5. Increasing the QRIS transaction limit from Rp5 million to Rp10 million
per transaction, from 1st March 2022, to drive private consumption
and accelerate the national economic recovery.
6. Expanding the use of Local Currency Settlement (LCS) as a means to
settle bilateral trade and investment transactions with major trading
partners, especially in Asia.
7. Strengthening international policy by expanding cooperation with
other central banks and international organisations in trading partner
countries, promoting trade and investment in conjunction with
relevant institutions as well as ensuring the success of six priority
agendas in the Finance Track together with the Ministry of Finance
during Indonesia’s G20 presidency in 2022.
Bank Indonesia will also continue to strengthen policy synergy with
the Government and Financial System Stability Committee (KSSK) to
accelerate the vaccination rollout and reopen economic sectors, facilitate
fiscal and monetary coordination as well as revive lending to the corporate
sector and other priority sectors, while maintaining macroeconomic and
financial system stability and driving the national economic recovery.

Arrangement

Regulations in 2022
March
Bank Indonesia decided to hold the BI 7-Day Reverse Repo Rate Bank Indonesia promulgated:
(BI7DRR) at 3.50%, while maintaining the Deposit Facility (DF) rate at 1. Bank Indonesia Regulation (PBI)
2.75% and the Lending Facility (LF) rate at 4.25%. No. 24/5/PBI/2022 concerning
Incentives for Banks Disbursing
Bank Indonesia continued optimising its policy mix strategy to maintain Funds for Certain and Inclusive
stability and support the economic recovery through the following Economic Activities.
policy measures: 2. Board of Governors Regulation
1. Strengthening exchange rate policy to maintain Rupiah stability in (PADG) No. 24/3/PADG/2022,
line with market mechanisms and economic fundamentals. as the eighth amendment to
2. Maintaining prime lending rate transparency in the banking industry PADG No. 20/10/PADG/2018
with a focus on granular Prime Lending Rates (SBDK) components concerning Minimum Reserve
and the affecting factors. Requirements in Rupiah
3. Safeguarding the availability and distribution of Rupiah currency and a Foreign Currency for
throughout the archipelago as well as cash services during the Conventional Commercial Banks,
approach to Ramadan and Eid-ul-Fitr 2022. Sharia Banks and Sharia Business
4. Preparing Payment System Providers (PSP), particularly first mover Units.
PSP, for National Open API Payment Standard (SNAP) implementation 3. Board of Governors Regulation
to support interlinkages between the banking and FinTech industries. (PADG) No. 24/4/PADG/2022
5. Strengthening international policy by expanding cooperation with concerning Implementation
other central banks and international organisations, promoting trade Regulations on Incentives for
and investment in conjunction with the relevant institutions as well Banks Disbursing Funds for
as ensuring the success of the six priority agendas in the Finance Certain and Inclusive Economic
Track during Indonesia’s G20 Presidency in 2022. Activities.
Bank Indonesia also remains committed to strengthening policy synergy
to control inflation, maintain monetary and financial system stability as
well as revive lending to the corporate sector and other priority sectors
to foster economic growth, stimulate exports and increase economic
and financial inclusion


Regulations in 2022
April
at 3.50%, while maintaining the Deposit Facility (DF) rate at 2.75% and 1. Bank Indonesia Regulation (PBI)
the Lending Facility (LF) rate at 4.25%. No. 24/6/PBI/2022 concerning
Policy on Rupiah Usage in
Bank Indonesia continued optimising its policy mix strategy to maintain International Activities.
stability and safeguard economic recovery momentum through the
following policy measures:
1. Strengthening exchange rate policy to maintain Rupiah stability in line
with market mechanisms and economic fundamentals.
2. Maintaining an accommodative macroprudential policy stance by
holding: (a) the Countercyclical Capital Buffer (CCyB) at 0%, (b)
Macroprudential Intermediation Ratio (RIM) in the 84-94% range, (c)
Macroprudential Liquidity Buffer (PLM) at 6% with 6% repo flexibility
and the Sharia Macroprudential Liquidity Buffer at 4.5% with 4.5%
repo flexibility.
3. Maintaining prime lending rate transparency in the banking industry
with a focus on sources of operating income in the banking industry.
4. Ensuring adequate availability of currency fit for circulation,
maintaining seamless currency distribution and prime cash services,
while preparing BI-FAST implementation during the holy fasting
month of Ramadan and Eid-ul-Fitr 1443H.
5. Raising the maximum deposit limit for registered electronic money
from Rp10 million to Rp20 million and the monthly transaction limit
from Rp20 million to Rp40 million, effective from 1st July 2022.
6. Strengthening international policy by expanding cooperation with
other central banks and international organisations, promoting trade
and investment in conjunction with the relevant institutions as well as
ensuring the success of the six priority agendas in the Finance Track of
Indonesia’s G20 Presidency in 2022 in conjunction with the Ministry
of Finance.
Bank Indonesia also remains committed to strengthening policy synergy
to control inflation, maintain monetary and financial system stability as
well as revive lending to the corporate sector and other priority sectors
to foster economic growth, stimulate exports and increase economic and
financial inclusion.

Arrangement

Regulations in 2022
May
at 3.50%, while maintaining the Deposit Facility (DF) rate at 2.75% and the 1. Board of Governors Regulation
Lending Facility (LF) rate at 4.25%. (PADG) No. 24/5/PADG/2022, as
the fifth amendment to PADG No.
Bank Indonesia bolstered its policy mix as follows: 20/15/PADG/2018 concerning
1. Strengthening exchange rate policy to maintain Rupiah stability in line with Real-Time Settlement through
market mechanisms and economic fundamentals. the Bank Indonesia – Real Time
2. Accelerating liquidity policy normalisation by incrementally raising Rupiah Gross Settlement System.
reserve requirements as follows: 2. Board of Governors
a. Bank Indonesia will raise the Rupiah reserve requirements for Regulation (PADG) No. 24/6/
conventional commercial banks from 5.0% currently to 6.0% on 1 Junest PADG/2022 concerning
2022, to 7.5% on 1st July 2022 and to 9.0% on 1st September 2022. Implementation Regulations on
a. Bank Indonesia will raise the Rupiah reserve requirements for sharia the Macroprudential Inclusive
banks and sharia business units from 4.0% currently to 4.5% on 1 June
st Financing Ratio for Conventional
2022, to 6.0% on 1 July 2022 and to 7.5% on 1 September 2022.
st st Commercial Banks, Sharia Banks
b. Bank Indonesia will provide 1.5% remuneration to banks fulfilling reserve and Sharia Business Units.
requirements obligations after taking into account the incentives for
banks disbursing loans/financing to priority sectors and MSMEs and/or
meeting the target Macroprudential Inclusive Financing Ratio (RPIM).
c. The higher reserve requirements will not affect the banking industry’s
ability to disburse loans/credit to the corporate sector or purchase SBN
to fund the State Revenue and Expenditure Budget (APBN).
a. Increasing incentives for banks disbursing loans/financing to priority
sectors and MSMEs and/or meeting the target Macroprudential Inclusive
Financing Ratio (RPIM) from 1st September 2022 as follows:
a. Relaxing statutory reserve requirements (GWM) by a maximum of 2%,
namely through an incentive for disbursing loans/financing to priority
sectors up to a maximum of 1.5% from 0.5% previously, with the maximum
incentive for achieving the target RPIM remaining at 0.5%.
b. Expanding the scope of priority subsectors from 38 to 46 across three
categories, namely resilient sectors, growth drivers and slow starters.
c. The incentives aim to increase the banking industry’s contribution to
inclusive financing and the national economic recovery.
3. Maintaining prime lending rate transparency in the banking industry with a
focus on lending rates for priority sectors.
4. Maintaining support for MSME development through the Karya Kreatif
Indonesia (KKI) expo to support the economic recovery, including the
National BBI Movement (GBBI) promoting pride in Indonesian-made
products and Proud to Travel in Indonesia Movement (GBWI).


Regulations in 2022
6. Strengthening payment system policy to reinforce economic recovery and
accelerate inclusive digitalisation by:
a. Extending the grace period on a minimum credit card payments and
late fees from 30th June 2022 previously to 31st December 2022 to
support credit card transactions while mitigating credit risk.
a. Extending the 0% QRIS merchant discount rate (MDR) for micro
merchants from 30th June 2022 previously to 31st December 2022
to continue efforts to expand the digital ecosystem and boost
transactions, particularly amongst MSMEs.
7. Strengthening international policy by expanding cooperation with other
central banks and authorities in partner countries, promoting trade and
investment in priority sectors in synergy with the relevant institutions
as well as ensuring the success of the six priority agendas in the Finance
Track of Indonesia’s G20 Presidency in 2022 in conjunction with the
Ministry of Finance.
Bank Indonesia constantly monitors inflation developments and institutes
the measures necessary to manage inflation within the predetermined
3.0%±1% target corridor set for 2022 and 2023. Towards that end, synergy
with the central and regional governments through national and regional
inflation control teams (TPIP and TPID) is constantly strengthened. Seeking
to maintain macroeconomic stability and accelerate the national economic
recovery, Bank Indonesia continues to build monetary and fiscal policy
coordination with the Government, while remaining committed to purchasing
SBN totalling Rp224 trillion in 2022 to fund the health and humanitarian
budgets in the State Revenue and Expenditure Budget (APBN). Similarly,
coordination under the auspices of the Financial System Stability Committee
(KSSK) as well as bilateral coordination between Bank Indonesia and the
Financial Services Authority (OJK) are continually strengthened to maintain
financial system stability.

Arrangement

Regulations in 2022
June
at 3.50%, while maintaining the Deposit Facility (DF) rate at 2.75% and the 1. Board of Governors Regulation
Lending Facility (LF) rate at 4.25%. (PADG) No. 24/7/PADG/2022
concerning Implementation of
Bank Indonesia bolstered its policy mix as follows: the Payment System by Payment
1. Strengthening exchange rate policy to maintain Rupiah stability and to Service Providers and Payment
support managing inflation in line with market mechanisms and economic System Infrastructure Operators.
fundamentals. 2. Board of Governors Regulation
2. Accelerating liquidity policy normalisation by strengthening the (PADG) No. 24/8/PADG/2022
effectiveness of increasing reserve requirements and Rupiah monetary concerning Implementation
operations. Regulations on the Fulfilment of
3. Maintaining prime lending rate transparency in the banking industry with Reserve Requirements in Rupiah
a focus on the overhead cost component. and a Foreign Currency for
4. Extending low National Clearing System (SKNBI) fees of Rp1 from Bank Conventional Commercial Banks,
Indonesia to the banking industry and up to Rp2,900 charged by banks to Sharia Banks and Sharia Business
their customers from 30th June 2022 to 31st December 2022 to increase Units.
cost efficiency and stimulate economic activity, while facilitating financial 3. Board of Governors Regulation
transactions to foster economic recovery. (PADG) No. 24/9/PADG/2022
5. Strengthening international policy by expanding cross-border payment concerning Implementation of
connectivity, promoting trade and investment in priority sectors in the Market Code of Conduct and
synergy with the relevant institutions as well as ensuring the success Treasury Certification.
of the six priority agendas in the Finance Track of Indonesia’s G20
Presidency in 2022.
Bank Indonesia continues to monitor the risks associated with inflationary
pressures moving forward, including inflation expectations and their impact
on core inflation, while implementing monetary policy normalisation
measures based on current data and dynamic conditions.
Bank Indonesia is also strengthening coordination with the central and

regional governments as well as relevant institutions through national and
regional inflation control teams (TPIP and TPID) to manage inflationary
pressures on the supply side and bolster production. Furthermore, Bank
Indonesia continues to build monetary and fiscal policy coordination with the
Government to maintain macroeconomic stability and support the national
economic recovery process. Similarly, coordination under the auspices
of the Financial System Stability Committee (KSSK) as well as bilateral
coordination between Bank Indonesia and the Financial Services Authority
(OJK) are continuously strengthened to maintain financial system stability.


Regulations in 2022
July
at 3.50%, while maintaining the Deposit Facility (DF) rate at 2.75% and the 1. Bank Indonesia Regulation (PBI)
Lending Facility (LF) rate at 4.25%. No. 24/7/PBI/2022 concerning
Transactions in the Foreign
Bank Indonesia remained vigilant of rising inflation expectations and Exchange Market.
core inflation moving forward, while strengthening the optimal monetary 2. Board of Governors Regulation
policy mix response necessary through Rupiah stabilisation measures, (PADG) No. 24/10/PADG/2022
strengthening monetary operations and interest rates. Towards that end, concerning Implementation
Bank Indonesia is bolstering its policy mix as follows: Regulations on Transactions in
1. Strengthening monetary operations as a pre-emptive and forward- the Foreign Exchange Market.
looking measure to mitigate the risk of rising inflation expectations and 3. Board of Governors Regulation
core inflation by increasing the interest rate structure in the money (PADG) No. 24/11/PADG/2022
market and releasing SBN in the secondary market. concerning Domestic Non-
2. Strengthening Rupiah stabilisation policy to help manage inflation Deliverable Forward (DNDF)
through foreign exchange market intervention, supported by stronger Transactions.
monetary operations as referred to in Point 1. 4. Board of Governors Regulation
3. Maintaining prime lending rate transparency policy in the banking (PADG) No. 24/12/PADG/2022,
industry with a focus on consumer loan interest rates. as an amendment to PADG No.
4. Expanding cross-border QRIS by, among others, accelerating 24/4/PADG/2022 concerning
implementation, piloting local currency settlement (LCS) with other Asian Implementation Regulations on
countries and organising National QRIS Week to achieve the target of 15 Incentives for Banks Disbursing
million new users. Funds for Certain and Inclusive
5. Ensuring smooth and orderly operationalisation of the National Open API Economic Activities.
Payment Standard (SNAP), particularly for first mover payment service
providers (PJP), while preparing for second mover implementation
targeted for December 2022, as well as expanding cross-border QRIS by,
among others, accelerating implementation and piloting LCS.
6. Strengthening international policy by expanding cooperation and
collaboration with central banks and relevant authorities in other
jurisdictions as well as ensuring the success of the six priority agendas in
the Finance Track of Indonesia’s G20 Presidency in 2022.
Bank Indonesia is also strengthening coordination with the central and
regional governments as well as relevant institutions through national and
regional inflation control teams (TPIP and TPID) to manage inflationary
pressures on the supply side and bolster production to support food security.
Furthermore, Bank Indonesia continues to build monetary and fiscal policy
coordination with the Government to maintain macroeconomic stability and
support the national economic recovery process. Similarly, Bank Indonesia
continues to strengthen policy synergy with the Financial System Stability
Committee (KSSK) to maintain macroeconomic and financial system stability,
while reviving lending to businesses in priority sectors to support economic
growth, exports as well as economic and financial inclusion.

Arrangement

Regulations in 2022
August
Bank Indonesia decided to raise the BI 7-day Reverse Repo Rate by 25 bps to Bank Indonesia promulgated:
3.75%, while also raising the Deposit Facility (DF) and Lending Facility (LF) rates 1. Bank Indonesia Regulation (PBI)
by 25 bps to 3.00% and 4.50% respectively. No. 24/8/PBI/2022 concerning
Bank Indonesia continued strengthening its policy mix response to maintain Issuing and Circulating the 2022
stability and strengthen recovery as follows: Series of Rp100,000 Denomination
1. Strengthening monetary operations by increasing the interest rate structure Rupiah Banknote.
in the money market in accordance with the higher BI 7-Day Reverse Repo 2. Bank Indonesia Regulation (PBI)
Rate (BI7DRR) to mitigate the risks associated with rising core inflation and No. 24/9/PBI/2022 concerning
inflation expectations. Issuing and Circulating the 2022
2. Strengthening Rupiah stabilisation policy as part of the measures to control Series of Rp50,000 Denomination
inflation through foreign exchange market intervention through spot and Rupiah Banknote.
Domestic Non-Deliverable Forward (DNDF) transactions as well as buying/ 3. Bank Indonesia Regulation (PBI)
selling SBN in the secondary market. No. 24/10/PBI/2022 concerning
3. Buying/selling SBN in the secondary market to strengthen Rupiah stability Issuing and Circulating the 2022
by increasing the attractiveness of short-term SBN portfolio investment and Series of Rp20,000 Denomination
creating a flatter long-term SBN yield structure considering the short-term Rupiah Banknote.
nature of inflationary pressures that are expected to return to the target 4. Bank Indonesia Regulation (PBI)
corridor in the medium-long term. No. 24/11/PBI/2022 concerning
4. Strengthening national and regional synergy to maintain price stability Issuing and Circulating the 2022
and bolster food security through a coordination meeting with national Series of Rp10,000 Denomination
and regional inflation control teams (TPIP and TPID), while accelerating Rupiah Banknote.
implementation of the National Movement for Food Inflation Control 5. Bank Indonesia Regulation (PBI)
(GNPIP). No. 24/12/PBI/2022 concerning
5. Implementing policy incentives for banks disbursing loans/financing to Issuing and Circulating the 2022
priority sectors and MSMEs and/or fulfilling the Macroprudential Inclusive Series of Rp5,000 Denomination
Financing Ratio (RPIM) from 1st September 2022 as follows: Rupiah Banknote.
a. Increasing the incentives for disbursing loans/financing to priority sectors 6. Bank Indonesia Regulation (PBI)
to a maximum of 1.5% from 0.5% previously and the incentive for fulfilling No. 24/13/PBI/2022 concerning
the RPIM target of up to 0.5%. Issuing and Circulating the 2022
b. Expanding the scope of priority subsectors from 38 to 46. Series of Rp2,000 Denomination
6. Maintaining prime lending rate transparency policy in the banking industry Rupiah Banknote.
with a focus on interest rates by credit segment. 7. Bank Indonesia Regulation (PBI)
7. Strengthening payment system policy to support the economic recovery No. 24/14/PBI/2022 concerning
and accelerate digitalisation, primarily by expanding QRIS and BI-FAST Issuing and Circulating the 2022
services and access to larger segments of the population through MSME Series of Rp1,000 Denomination
empowerment and purchasing domestic products. Rupiah Banknote.
Bank Indonesia continues to strengthen international policy by expanding 8. Bank Indonesia Regulation (PBI)
cooperation with other central banks and authorities in partner countries, while No. 24/15/PBI/2022 concerning
promoting investment and trade in priority sectors in synergy with other relevant the Withdrawal from Circulation of
institutions as well as ensuring the success of the six priority agendas in the the 1995 Series Commemorative
Finance Track of Indonesia’s G20 Presidency in 2022. Policy synergy between 50-Year Anniversary of Indonesian
Bank Indonesia, the Government and Financial System Stability Committee Independence Rupiah Banknote.
(KSSK) is constantly strengthened to maintain macroeconomic and financial 9. Board of Governors Regulation
system stability as well as revive loans/financing to businesses in priority sectors (PADG) No. 24/13/PADG/2022
to support economic growth, exports and economic and financial inclusion. concerning Implementation
Regulations on Transactions in the
Foreign Exchange Market Based on
Sharia Principles.


Regulations in 2022
September
Bank Indonesia decided to raise the BI 7-Day Reverse Repo Rate (BI7DRR)
by 50bps to 4.25%, while also raising the Deposit Facility (DF) and Lending
Facility (LF) rates by 50bps to 3.50% and 5.00% respectively.
Bank Indonesia also continued to strengthen its policy mix response to

maintain stability and strengthen economic recovery as follows:
1. Strengthening monetary operations by increasing the interest rate
structure in the money market in accordance with the higher BI7DRR to
lower inflation expectations and return core inflation to the target.
2. Strengthening Rupiah stabilisation policy as part of the measures to control
inflation through foreign exchange market intervention, including spot and
Domestic Non-Deliverable Forward (DNDF) transactions, as well as buying/
selling Government Securities (SBN) in the secondary market.
3. Continuing operation twist through the buying/selling of SBN in the
secondary market to strengthen rupiah stabilisation policy by increasing the
attractiveness of SBN yields for foreign portfolio investment inflows by raising
short-term SBN yields in line with the higher BI7DRR and creating a flatter
long-term SBN yield structure considering the transient nature of current
inflationary pressures, with inflation expected to return to the target corridor
in the medium-long term.
4. Maintaining prime lending rate transparency policy in the banking industry
with a focus on bank profitability.
5. Accelerating and expanding regional payment digitalisation by utilising the
momentum created by announcing the winners of the National Working
Group to Accelerate and Expand Local Digitalisation (P2DD) Championship.
6. Accelerating the milestone of 15 million QRIS users and increasing BI-FAST
use in payment transactions.
Policy coordination among the central government, regional governments
and strategic partners within the Central and Regional Inflation Control
Teams (TPIP and TPID) is constantly strengthened through the effective
implementation of the National Movement for Food Inflation Control
(GNPIP) in various regions. Policy synergy between Bank Indonesia and
government fiscal policy, as well as with the Financial System Stability
Committee (KSSK), is also being strengthened to maintain macroeconomic
and financial system stability, while reviving lending to businesses in
priority sectors to stimulate economic growth and exports, while increasing
economic and financial inclusion. Bank Indonesia continues to strengthen
international cooperation with other central banks and authorities in
partner countries, while promoting investment and trade in priority sectors
in synergy with other relevant institutions. Coordination with the Ministry
of Finance and other relevant government ministries/agencies is also being
strengthened to ensure the success of the six priority agendas in the Finance
Track of Indonesia’s G20 Presidency in 2022, including the 4th FMCBG
meeting in October 2022 and the G20 Leaders’ Summit in November 2022.

Arrangement

Regulations in 2022
October
Bank Indonesia decided to raise the BI 7-Day Reverse Repo Rate (BI7DRR) Bank Indonesia promulgated:
by 50bps to 4.75%, while also raising the Deposit Facility (DF) and Lending 1. Bank Indonesia Regulation (PBI)
Facility (LF) rates by 50bps to 4.00% and 5.50% respectively. No. 24/16/PBI/2022, as the
fourth amendment to PBI No.
Bank Indonesia also continued strengthening its policy mix response to 20/4/PBI/2018 concerning the
maintain stability and strengthen economic recovery as follows: Macroprudential Intermediation
1. Strengthening monetary operations by increasing the interest rate Ratio and Macroprudential
structure in the money market in accordance with the higher BI 7-Day Liquidity Buffer for Conventional
Reverse Repo Rate (BI7DRR) to lower inflation expectations and return Commercial Banks, Sharia Banks
core inflation to the target. and Sharia Business Units.
2. Strengthening rupiah stabilisation policy as part of the measures to 2. Board of Governors Regulation
control inflation, primarily imported inflation, through foreign exchange (PADG) No. 24/14/PADG/2022,
market intervention, including spot and Domestic Non-Deliverable as the fifth amendment to
Forward (DNDF) transactions, as well as buying/selling SBN in the PADG No. 21/22/PADG/2019
secondary market. concerning the Macroprudential
3. Continue buying/selling SBN in the secondary market to strengthen Intermediation Ratio and
transmission of the BI7DRR by increasing the attractiveness of SBN Macroprudential Liquidity Buffer
yields for foreign portfolio investment inflows to strengthen exchange for Conventional Commercial
rate stabilisation measures. Banks, Sharia Banks and Sharia
4. Maintaining accommodative macroprudential policy to revive bank Business Units.
lending to businesses by: 3. Board of Governors Regulation
a. Holding: (i) the countercyclical capital buffer (CCyB) at 0%, (b) (PADG) No. 24/15/PADG/2022
Macroprudential Intermediation Ratio (RIM) in the 84-94% range, and concerning Reporting the
(c) Macroprudential Liquidity Buffer (SBDK) at 6% with repo flexibility Carriage of Foreign Banknotes In
of 6% and sharia MPLB at 4.5% with repo flexibility of 4.5%, and Out of the Customs Territory
b. Maintaining looser Loan/Financing-to-Value (LTV/FTV) ratios on of the Republic of Indonesia.
property loans/financing to a maximum of 100% on all property types
(landed houses, apartments and shop/office house) for banks meeting
specific NPL/NPF criteria, to revive credit growth in the property
sector in line with risk management and prudential principles, effective
from 1st January 2023 to 31st December 2023, and
c. Maintaining looser down payment requirements on automotive
loans/financing at 0% for all types of new motor vehicle in order to
revive credit growth in the automotive sector, while applying risk
management and prudential principles, effective from 1st January
2023 to 31st December 2023.


Regulations in 2022
5. Maintaining prime lending rate (SBDK) transparency policy in the
banking industry with a focus on the assessment of policy rate
transmission to interest rates on new loans in the banking industry.
6. Strengthening payment system policy through digitalisation of the
banking industry and non-bank financial institutions by expanding the
participation, ecosystem and utilisation of BI-FAST, while accelerating the
adoption of National Open API Payment Standards (SNAP) for banks and
non-banks.
7. Strengthening international cooperation with other central banks and
financial authorities, promoting trade and investment in priority sectors
in synergy with other relevant institutions as well as ensuring the success
of the six priority agendas in the Finance Track of Indonesia’s G20
Presidency, specifically at the G20 Leaders’ Summit in November 2022.
Policy coordination among the central government, regional governments,
and strategic partners within the Central and Regional Inflation Control
Teams (TPIP and TPID) is constantly strengthened through the effective
implementation of National Movement for Food Inflation Control (GNPIP)
in various regions. Policy synergy between Bank Indonesia and government
fiscal policy, as well as with the Financial System Stability Committee (KSSK),
is also being strengthened to maintain macroeconomic and financial system
stability, while reviving lending to businesses in priority sectors to stimulate
economic growth and exports, while increasing economic and financial
inclusion

Arrangement

Regulations in 2022
November
Bank Indonesia decided to raise the BI 7-Day Reverse Repo Rate (BI7DRR) by Bank Indonesia promulgated:
50bps to 5.25%, while also raising the Deposit Facility (DF) and Lending Facility 1. Board of Governors Regulation
(LF) rates by 50bps to 4.50% and 6.00% respectively. (PADG) No. 24/16/PADG/2022,
Bank Indonesia also continued strengthening its policy mix response to maintain as the fourth amendment to
stability and strengthen economic recovery as follows: PADG No. 21/25/PADG/2029
1. Strengthening monetary operations by increasing the interest rate structure concerning the Loan-to-Value
in the money market in accordance with the higher BI7DRR to lower inflation (LTV) Ratio for Property Loans,
expectations and return core inflation to the target. Financing-to-Value (FTV)
2. Strengthening rupiah stabilisation policy as part of the measures to control Ratio for Property Loans, and
inflation, primarily imported inflation, through foreign exchange market Downpayment Requirements for
intervention, including spot and DNDF transactions, as well as buying/selling Automotive Loans and Financing.
SBN in the secondary market. 2. Board of Governors Regulation
3. Continuing to buy/sell SBN in the secondary market to strengthen (PADG) No. 24/17/PADG/2022,
transmission of the higher BI7DRR by increasing the attractiveness of SBN as the third amendment to
yields for foreign portfolio investment inflows to strengthen exchange rate PADG No. 22/22/PADG/2020
stabilisation measures. concerning Open Market
4. Issuing Bank Indonesia Sukuk (SukBI) for use as underlying instruments in the Operations Instruments.
form of inclusive financing securities (inclusive SukBI), which are recognised
as SPBI (Surat Berharga Pembiayaan Inklusif), in line with BI commitment to
support inclusive financing and develop the sharia economy and finance.
5. Maintaining prime lending rate (SBDK) transparency policy in the banking
industry with a focus on the response of interest rates in the banking industry
to policy rate.
6. Fostering the use of QRIS and continuing to develop QRIS features and
services, including cross-border QRIS, after achieving the target of 15 million
new users in October 2022.
7. Fostering payment system innovation, including public acceptance of BI-
FAST, by expanding participation and service channels, while maintaining
effective regular public communication.
Policy coordination among the central government, regional governments,

and strategic partners within the Central and Regional Inflation Control Teams
(TPIP and TPID) is constantly strengthened through the implementation of
National Movement for Food Inflation Control (GNPIP) in various regions.
Policy synergy between Bank Indonesia and government fiscal policy, as well
as with the Financial System Stability Committee, is also being strengthened
to maintain macroeconomic and financial system stability, while reviving
lending to businesses in priority sectors to stimulate economic growth and
exports, while increasing economic and financial inclusion. Bank Indonesia
has also strengthened international cooperation with other central banks
and financial authorities, while promoting investment and trade in priority
sectors in synergy with relevant institutions.


Regulations in 2022
December
Bank Indonesia decided to raise the BI 7-Day Reverse Repo Rate (BI7DRR) by Bank Indonesia promulgated:
25 bps to 5.50%, while also raising the Deposit Facility (DF) and Lending Facility 1. Bank Indonesia Regulation (PBI)
(LF) rates by 25 bps to 4.75% and 6.25% respectively. No. 24/17/PBI/2022 concerning
the Revocation and Repeal of the
Confirming the direction of Bank Indonesia policy mix in 2023 as conveyed in Bank Indonesia Regulation on
the Annual Meeting of Bank Indonesia (PTBI) 2022 on 30th November 2022, Bank Indonesia Liquidity Credit
monetary policy in 2023 will remain pro-stability while macroprudential policy, in relation to Program Loans and
payment system digitalization, money market deepening, and inclusive and the Implementation Regulations.
green economic-financial program are constantly directed towards pro-growth. 2. Bank Indonesia Regulation (PBI)
No. 24/18/PBI/2022, as the
In connection therewith, Bank Indonesia consistently strengthened its policy second amendment to PBI No.
mix response to maintain stability and economic recovery momentum: 21/14/PBI/2019 concerning
1. Strengthening monetary operations by increasing the interest rate structure Foreign Exchange Proceeds of
in the money market in accordance with the higher BI7DRR mentioned Exports and Foreign Exchange
above. Payments on Imports.
2. Strengthening Rupiah exchange rate stabilisation policy as part of the 3. Bank Indonesia Regulation (PBI)
measures to control inflation, primarily imported inflation, through foreign No. 24/19/PBI/2022 concerning
exchange intervention, including spot and Domestic Non-Deliverable Demand Deposits at Bank
Forward (DNDF) transactions, as well as buying/selling Sovereign Securities Indonesia.
(SBN) in secondary market. 4. Bank Indonesia Regulation
3. Continuing to buy/sell SBN in the secondary market to strengthen (PBI) No. 24/20/PBI/2022
transmission of the higher BI7DRR by increasing the attractiveness of concerning Sharia Hedging
SBN yields for foreign portfolio investment inflows to strengthen Rupiah Swap Transactions with Bank
exchange rate stabilisation measures. Indonesia.
4. Issuing new foreign exchange monetary operation (MO) instruments to boost 5. Board of Governors Regulation
the repatriation of Export Proceeds, especially from Natural Resources, by (PADG) No. 24/18/PADG/2022,
banks and exporters to strengthen stabilisation, including Rupiah exchange as an amendment to PADG No.
rate stability and national economic recovery. The foreign exchange MO 20/19/PADG/2018 concerning
instruments are applied with competitive yields based on a transparent the Indonesia Overnight Index
market mechanism and incentives given to banks. Average and Jakarta Interbank
5. Strengthening accommodative, inclusive, and sustainable macroprudential Offered Rate.
policy to boost the growth of credit/financing by banks, primarily non- 6. Board of Governors Regulation
recovering priority sectors, People’s Business Credit (KUR), and green (PADG) No. 24/19/PADG/2022,
credit/financing, to support economic recovery by amending the reserve as an amendment to PADG No.
requirement (GWM) incentive to be applied from 1 April 2023, including:
st 22/3/PADG/2020 concerning the
a. Reclassification of 46 priority sub-sectors in 3 (three) business sector Standardisation of Competition
groups, namely resilience group, growth driver group, and slow starter in the Payment System and
group, according to the latest conditions by maintaining credit/financing Rupiah Currency Management.
growth threshold that gets an incentive for slow starters at a minimum of 7. Board of Governors Regulation
1%, and increasing threshold for resilient and growth driver groups from (PADG) No. 24/20/PADG/2022
initially at least 1% to at least 5% and 3%, respectively. concerning Reporting the
b. Two-fold increase in GWM incentive amount to banks extending People’s Implementation of Market
Business Credit and MSMEs credit becomes 1% at the maximum Code of Conduct and Treasury
accompanied by addition of bank groups based on achievement of Certification.
Macroprudential Inclusive Financing Ratio (RPIM), namely 30% - 50% and
above 50%.

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Regulations in 2022
c. Incentive for green credit/financing in property and/or green automotive
is 0.3% at the maximum.
d. Total GWM incentive which may be received by banks changes from
previously 200bps at the maximum to 280bps at the maximum.
6. Continuing prime lending rate transparency policy with a focus on bank’s
interest rate responses to the policy rate.
7. Strengthening payment system policy to increase efficiency in order to
maintain economic recovery momentum by:
a. Continuing credit card policy by:
1) Maintaining the maximum limit of credit card interest rate at 1.75%
per month.
2) Extending the validity of minimum payment by a credit cardholder of
5% of the total billing amount from 31st December 2022 to 30th June
2023.
3) Extending the validity of penalty for late credit card payment of 1% or
Rp100,000 at the maximum from 31st December 2022 to 30th June
2023.
b. Extending the validity of QRIS Merchant Discount Rate (MDR) for
merchants in the Micro Business category at 0% from 31st December
2022 to 30th June 2023.
c. Continuing validity of National Clearing System (SKNBI) tariff of Rp1
from Bank Indonesia to banks and maximum of Rp2,900 from banks to
customers from 31st December 2022 to 30th June 2023.
8. Taking strategic steps to ensure orderly national payment system to
anticipate Christmas and New Year by:
a. Ensuring the availability of quality Rupiah currency fit for circulation
throughout the territory of the Republic of Indonesia
b. Maintaining continuity of payment system operations by Bank Indonesia
and payment system industry.
9. Strengthening international cooperation with other central banks and
partner country authorities, and facilitation of investment and trade
promotion implementation in priority sector in cooperation with the relevant
institutions. In addition, Bank Indonesia coordinates with the relevant
Ministries/Institutions for successful 2023 ASEAN Chairmanship, especially
through financial track.
Policy coordination with the Central Government, Regional Government, and
strategic partners is consistently strengthened. In this regard, coordination
with Central and Regional Inflation Control Team (TPIP and TPID) is continued
through strengthening of National Movement for Food Inflation Control
(GNPIP) in various regions. Policy synergy between Bank Indonesia and the
Government, as well as with the Financial System Stability Committee, is also
being strengthened to maintain macroeconomic and financial system stability,
while reviving credit/financing to businesses in priority sectors to support
economic growth and export, while increasing green economic and financial
inclusion.

Glossary
3I Integration, Interconnection, and Interoperability, which describes the type of

connectivity between Financial Market Infrastructures (FMIs).
Administered Prices (AP) The component of inflation in the form of goods and services regulated by the
Government.
Application Programming A set of algorithms, protocols and tools for building software applications that
Interface (API) determine how the software components interact.
Appointed Cross Currency Banks appointed by the authorities of two countries to facilitate LCS implementation
Dealer (ACCD) through the opening of partner country currency accounts in the home country.
Association of Southeast A regional organisation that facilitates cooperation between 10 countries in
Asian Nations (ASEAN) Southeast Asia.
Social Aid (Bansos) The provision of non-continuous and selective aid in the form of money/goods from
regional governments to individuals, families, groups and/or communities, which
provides protection against potential social risk.
Bank Indonesia Policy Mix The use of several policies by Bank Indonesia, including monetary, macroprudential
and payment system policies as well as other supporting policies.
Institutional Policy Mix The use of several policies in the institutional area on the basis of effective and
efficient performance as well as compliance. This is required to strike an optimal
balance between achieving the BI mandate through effective performance and efforts
to promote efficient resource productivity, as well as ensuring legal compliance and
accountability through good governance.
Bank Indonesia-Electronic Infrastructure used to process transactions electronically.
Trading Platform (BI-ETP)
Bank Indonesia – Real Time An electronic fund transfer system between RTGS participants in rupiah, with real-
Gross Settlement (BI-RTGS) time settlement per individual transaction.
Bank Indonesia – Scripless A means of transaction with Bank Indonesia, including the administration of
Securities Settlement securities, electronically with direct connections between the Participants, Operator
System (BI-SSSS) and BI-RTGS system.
BI 7-Day Reverse Repo Rate The transactional policy rate reflects the monetary policy stance set by Bank
(BI7DRR) Indonesia. The policy rate is applied when buying/selling government securities
between Bank Indonesia and commercial banks in the money market. The securities
are transacted through a repurchase (repo) agreement within a period of seven days.
BI-FAST A real-time, 24/7 payment system that accelerates the transaction settlement process
and will replace the National Clearing System (SKNBI).
Bilateral Currency Swap A form of bilateral financial cooperation regularly used by central banks, whereby two
Arrangement central banks agree to acquire each other’s currency in exchange for its own on a pre-
agreed maturity date.
Blueprint A detailed framework used as the basis for policymaking that includes determining
the goals and targets, strategy formulation, program implementation and focus of
activities as well as the measures to be implemented by each work unit.
Business Matching Business meetings between economic players.
Reserve Assets/Foreign Reserve assets controlled by Bank Indonesia that are booked as assets on the balance
Reserves sheet of Bank Indonesia in the form of gold, foreign banknotes and claims in the form
of demand deposits, money orders, foreign securities and other assets in a foreign
currency to non-residents that can be used as a means of international payment
instruments.

Arrangement
Capital Adequacy Ratio The Capital Adequacy Ratio is measured based on the composition between total
(CAR) capital and risk-weighted assets (RWA).
Cash is King A phenomenon where investors or market players prefer placements in liquid
instruments or hold investment assets in the form of cash or cash equivalents rather
than other types of investment asset because they are considered more valuable or
secure during periods of uncertainty.
Central Bank Digital A new electronic form of central bank money that is the liability of the central bank
Currency (CBDC) and denominated in the official national currency, which functions as a medium of
exchange unit of account and store of value.
Central Counterparty (CCP) A clearing institution that takes on counterparty credit risk between parties to a
transaction through a novation process and multilateral netting on the transaction
exposure between market participants.
Core Banking System (CBS) A system of applications to execute the automation function of business processes for
BI services to its customers. CBS is part of the BIMASAKTI project at Bank Indonesia
and has become a national application integrated with 20 internal and external
surrounding applications.
Countercyclical Capital Additional capital that functions as a buffer to anticipate losses in the event of
Buffer (CCyB) excessive credit growth and/or financing in the banking industry that has the potential
to disrupt financial system stability.
Covid-19 Coronavirus (CoV) is a large family of viruses that cause illnesses ranging from the
common cold to more severe diseases, such as Respiratory Syndrome (MERS-CoV)
and Severe Acute Respiratory Syndrome (SARS-CoV). Coronavirus disease (Covid-19)
is an infectious disease caused by the newest coronavirus discovered in 2019.
Credit Spread The spread between the yields of two different debt instruments or bonds with the
same maturity but with different ratings or credit quality.
Credit to GDP The gap between loans/financing to GDP.
Cross Border Passing, occurring, or performed across a border between two countries.
Cross-Border Payment Cross-border payments are financial transactions where the payer and the recipient
System are based in separate countries.
Third-Party Funds (TPF) Funds entrusted by the public to banks based on deposit agreements in the form of
demand deposits, term deposits, certificates of deposit, savings deposits and/or other
equivalents.
Current Account Deficit A negative current account occurs when a country imports more goods and services
than it exports, or the difference between the deficit/surplus in the goods trade
balance and the deficit/surplus in the services trade balance.
Term Deposit A bank product similar to a savings deposit with withdrawal restricted to a specific
date of maturity based on an agreement between the bank and the customer.
Deposit Facility A facility for banks to deposit funds at Bank Indonesia in the context of monetary
operations.
Depreciation A decrease in the value of domestic currency against a foreign currency.
Derivative Derivative instruments include contracts, agreements or transactions whose value
are derived from an underlying financial instrument.
Super Priority Destinations Tourist destinations prioritised for development from 2019-2024, including Lake
Toba, Borobudur, Mandalika, Labuan Bajo, and Likupang.

Foreign Exchange Proceeds Foreign exchange proceeds received by exporters for export activities
of Exports (DHE)
Digital Banking Electronic banking services developed by optimising the use of customer data to
serve customers more quickly, conveniently and according to their needs, which can
be carried out independently by customers, while complying with stringent security
aspects.
Digitalisation The process of transferring media from physical, printed, audio and video forms into
digital formats.
Domestic Non-Deliverable Plain vanilla derivative transactions in the form of forward transactions through a
Forwards (DNDF) fixing mechanism with the settlement currency in rupiah.
Dynamic Systemic Risk A forward-looking and integrated surveillance framework that monitors all
Surveillance surveillance information under the authority of Bank Indonesia.
e-Commerce Trading transactions performed online or using internet technology.
Digital Economy An economy oriented towards the development and advancement of information and
communication technology (ICT).
Green Economy and An economic and financial system that supports efforts to conserve and consider
Finance environmental and/or climate aspects.
Export The process of transporting goods or commodities from one country to another.
Electronification The evolution from cash to cashless payment methods.
Electronification of Regional An initiative to change the revenue and expenditure transactions of regional
Government Transactions governments from cash to digital-based cashless transactions.
End-to-end Comprehensive, integrated and inclusive policies.
Exit Policy or Exit Strategy The policies adopted to move away from the extraordinary policy measures previously
implemented due to extraordinary circumstances.
Finance Track G20 working groups comprising the ministries of finance and central banks of each
G20 member country.
Financial Market A multilateral system between (direct) participants, including system operators,
Infrastructures (FMIs) used for clearing or recording payments, securities, derivatives or other financial
transactions.
Financial Technology The integration of financial services and technology that ultimately changed the
(FinTech) business model from conventional to moderate, evolving from face-to-face payments
and carrying cash to remote transactions and payments made in seconds.
Financing-to-Value (FTV) The ratio of disbursed financing to asset value.
Ratio
Forward Looking Monetary policy that is oriented towards achieving the inflation target in upcoming
periods taking into account the time lag of monetary policy.
Political and Economic Uncertain and turbulent political and economic conditions.
Fragmentation
Front Loaded BI policy response of raising interest rates by higher increments at the beginning.
Reserve Requirements (RR) The minimum reserve balance that a bank holds at Bank Indonesia.
Granular Detailed data or the lowest level of data (for instance, seconds, flagship products,
special attributes) in a data structure.

Arrangement
Halal Value Chain (HVC) An end-to-end ecosystem or halal supply chain from upstream to downstream.
The HVC encompasses four sectors, namely Muslim Friendly Tourism (MFT), halal
cosmetics and medicaments, halal food, and the halal financial industry.
Hedging Activities carried out by investors to reduce or eliminate a source of risk.
Herd Immunity Herd immunity occurs when a large portion of the population becomes immune to
a disease, thus providing indirect protection to those who are not immune to that
infectious disease.
Import The activity of purchasing goods from abroad.
Imported Inflation Inflationary pressures caused by an increase in the prices of imported goods due to
the impact of changes in exchange rates.
IndONIA The average interest rate index for unsecured overnight interbank rupiah money
market transactions in Indonesia.
Inflation An economic condition characterised by a rapid increase in prices, which erodes public
purchasing power. There are two sources of inflation, namely cost-push and demand-
pull inflation.
Consumer Price Index (CPI) The increase in the prices of goods as measured by changes in the consumer index,
Inflation which reflects changes in the prices of the goods and services required by the wider
community.
Core Inflation The component of inflation that is persistent and influenced by fundamental factors,
such as the demand-supply interactions, exchange rates, international commodity
prices, inflation in trading partner countries and inflation expectations. Core inflation
is calculated based on CPI after removing the VF and AP components.
Money Market A multilateral system between (direct) participants, including system operators,
Infrastructure used for clearing or recording payments, securities, derivatives or other financial
transactions.
Economic/Financial Unlocking sustainable access to financial markets and goods markets.
Inclusion
Integration The integration of post-trade infrastructure in one institution for the transaction
service value chain.
Interest Rate Differential The difference between interest rates in two countries.
(IRD)
Interconnectivity The ability of systems to exchange information or transact requires intermediaries, in
other words the interconnection between systems happens indirectly.
Interoperability The ability of two systems to communicate or transact directly.
Indonesia Shari’a Economic An annual national and international event organised by Bank Indonesia comprising
Festival (ISEF) two main activities, namely the Sharia Economic Forum and Sharia Fair. The Forum
features seminars and workshops, while the Fair provides an outlet for business
players in the halal industry, pesantren (Islamic boarding schools), financial
institutions and other relevant institutions.
Investment The acquisition of assets with the expectation of generating future profit, normally
referring to real (i.e., non-financial) assets.
Investment Grade A rating indicating that a financial instrument, in this case a bond, presents a low level
of risk, among others.

Deposit Cash The activity of providing rupiah from Bank Indonesia to a managing bank to supply the
cash needs of participating banks to meet public demand for currency in a particular
region.
Structural Reform Policy Policies instituted by the government to improve the supply side of markets, often
emphasizing the removal of barriers, such as restrictive regulations.
Digital Finance Finance that uses digital technology, such as cellular or web technology through a
third party.
Green Finance Sustainable finance that considers environmental, social and good governance
aspects.
Financial Inclusion The deepening of financial services to ensure the availability and equality of
opportunities to access formal financial products.
Cluster Interrelated business groups or MSME hubs.
Communiqué An official announcement or statement conveyed to the public regarding current
issues of common concern.
Lending Facility The provision of rupiah funds from Bank Indonesia to banks in the context of
monetary operations within a period of one working day.
Liquidity An entity’s ability to meet short-term debt obligations.
Loan-to-Value (LTV) Ratio Ratio of disbursed loans to asset value.
Local Currency Bilateral A form of bilateral financial cooperation common to central banks that allows a
Swap Arrangement central bank to secure foreign currency from a partner central bank by exchanging the
local currencies of each country, which are subsequently bought back at the same rate
on a specified future date.
Local Currency Settlement Bilateral transactions between two countries with settlement in the local currency
(LCS) within the territorial jurisdiction of each country.
Local Currency Transactions Bilateral transactions between two countries with settlement in the local currency to
(LCT) diversify currency exposure.
M1 A narrow measure of money supply, consisting of currency and demand deposits.
M2 A broad measure of money supply, consisting of currency, demand deposits, quasi-
money (time deposits and savings deposits denominated in rupiah and a foreign
currency as well as demand deposits in a foreign currency) and securities other than
shares.
Macroprudential An approach to financial regulation that aims to mitigate the risks posed to the
financial system as a whole.
Microprudential An approach to financial regulation based on the management of financial institutions
individually to maintain business continuity.
Indonesia’s Balance of A summary of all transactions between the residents of two countries within a given
Payments (BOP) period (usually one year). The balance of payments includes purchases and sales of
goods and services, grants from individuals and foreign governments, and financial
transactions. In general, the balance of payments consists of the capital account,
capital and financial account, as well as financial items.
Non-Performing Loans Bank loans that are at risk of default, usually owing to overdue repayments.
(NPL)

Arrangement
Cashless Payment methods not conducted with physical banknotes or coins, namely through
e-money, mobile banking and internet banking.
Policy Normalisation Policies instituted to return extraordinary policy measures, which were taken under
unusual circumstances, back to the normal settings.
Online Available on or performed using the internet or other computer network.
Monetary Operations (MO) The implementation of monetary policy by Bank Indonesia in the context of monetary
control through open market operations (OMO) and interest rate corridors (standing
facilities).
Open Market Operations Transactions in the money market and/or foreign exchange market by Bank Indonesia
(OMO) with banks and/or other parties in the context of conventional or sharia-compliant
monetary operations.
Pandemic A widespread occurrence of an infectious disease over a whole country or the world
at a particular time.
Interbank Money Market Overnight lending and borrowing activities in rupiah and/or foreign currencies
between conventional banks.
National Economic One of a series of activities to lessen the economic impact of Covid-19, which aimed
Recovery (PEN) to protect, maintain and increase the economic capacity of business players during the
Covid-19 pandemic.
Macroprudential Liquidity A macroprudential instrument designed to increase banking liquidity resilience.
Buffer (PLM) MPLB requires banks to maintain a liquidity buffer in the form of securities as a
percentage of third-party funds denominated in rupiah.
Rupiah Currency Parties licensed by Bank Indonesia to provide rupiah currency management services.
Management Service
Providers (PJPUR)
Aggregate Demand The total demand for final goods and services in the economy.
Pre-emptive A rapid response to anticipate future risks.
G20 Presidency G20 is a multilateral cooperation forum consisting of 19 major countries and the
European Union (EU). The function of the presidency is held by one of the member
countries and rotated annually.
Pricing Policy Pricing policy describes what fees are applicable to settle transactions via a particular
system.
Pro-growth Policies instituted to foster economic growth.
Pro-stability Policies instituted to maintain economic stability.
Project Garuda An umbrella initiative to explore the high-level design of Central Bank Digital
Currency (CBDC) in Indonesia, known as the Digital Rupiah.
Purchasing Managers Index An indicator of economic trends obtained from monthly surveys of business
(PMI) conditions (improving, deteriorating on unchanged) in private sector.
Quick Response Code The standardisation of various QR codes from different payment system service
Indonesian Standard (QRIS) providers, developed by the payment system industry in synergy with Bank Indonesia
to ensure a convenient, fast and secure transaction process.
Cross-Border QRIS A collaborative initiative to develop standardised settlement infrastructure for cross-
border trade.
Structural Reform A fundamental change in a system.

Macroprudential A refinement of the RR-loan to funding ratio (RR-LFR) by expanding the

Intermediation Ratio (MIR) intermediation components, namely the addition of securities held by banks as
a component of financing. Notwithstanding, only securities meeting specific
requirements can be calculated as a component of MIR, including securities issued by
non-financial corporations with an investment grade rating or equivalent.
Macroprudential Inclusive A refinement of the MSME credit ratio by expanding partner banks to disburse
Financing Ratio (RPIM) inclusive financing, the securitisation of inclusive financing and other business models
to strengthen accommodative macroprudential policies.
Regional Payment Payment connectivity cooperation in the region agreed by Bank Indonesia, Bank
Connectivity (RPC) Negara Malaysia, Bangko Sentral ng Pilipinas, the Monetary Authority of Singapore
(MAS) and Bank of Thailand.
Repurchase Agreement The sale of a financial instrument between two parties, accompanied by an agreement
(Repo) to repurchase the same financial instrument on a predetermined date at an agreed
price.
Resflation An economic condition where the risk of recession is accompanied by high inflation.
Resilience The capacity to adapt or recover quickly from a difficult situation.
Loan Restructuring A program to support economic growth stimuli through efforts provided by financial
institutions, such as banks and finance companies, to help relieve borrowers with
potential repayment difficulties for certain reasons.
Reverse Repo The sale of a security to an eligible counterparty with an agreement to repurchase
that same security at a specified price at a specific time in the future.
Digital Rupiah The digital version of rupiah currency.
Sandbox An effort to maintain FinTech innovation in the payment system business.
Scarring Effect Continuing damage to the economy, occurring well after the initial crisis has passed.
Shock Absorber Policy measures, coordination and cooperation to dampen the impact of shocks/
turmoil.
Economic Cycle Fluctuations in economic activity from the long-term growth trend.
Financial Cycle Fluctuations in financial activity from the long-term growth trend.
Payment System A system used to settle financial transactions through the transfer of monetary value
for one party to another.
Sovereign Credit Rating The debt rating of a sovereign state institution, namely the government. A sovereign
credit rating indicates the level of risk in a country’s investment environment, which is
used by non-resident investors looking to invest in that country.
Spot An outright transaction involving the exchange of two currencies with settlement in
two business days or less.
Stagflation An economic condition characterised by low economic growth and high inflation.
National Open API Payment The Payment Standards set by Bank Indonesia to create a healthy, competitive
Standard (SNAP) and innovative payment system industry; foster payment system infrastructure
integration, interconnection, interoperability as well as security and reliability; and/or
nurture healthy, efficient and fair market practices in the payment system.
Fiscal Stimulus Fiscal policy instituted by the government to boost aggregate demand, which is
expected to influence economic activity in the near term.

Arrangement
Strategic Business Plan The Bank Indonesia Medium-Term Plan for 2020-2025.
Stress Tests Stress testing is a technique to evaluate how a system performs under extreme or
unexpected conditions.
Strong Dollar The phenomenon of broad-based US dollar appreciation against other currencies.
Subsidy Funds granted by the government to lower the price of a good or service.
Sukuk A long-term security compliant with sharia principles issued to sharia bondholders by
issuers.
Bank Indonesia Sukuk Sukuk issued by Bank Indonesia using sharia-compliant securities held by Bank
(SukBI) Indonesia as the underlying asset.
Commercial Securities Securities issued by non-financial corporations and financial institutions in the form
of promissory notes with maturities of up to one year, which are registered at Bank
Indonesia.
Government Securities Rupiah Government Debt Securities and rupiah Government Sharia Securities issued
(SBN) by the Government of the Republic of Indonesia.
Government Sharia Government securities issued based on sharia principles.
Securities (SBSN) or
Government Sukuk
Government Debt Securities in the form of debt securities denominated in rupiah or a foreign currency
Securities (SUN) issued by the Republic of Indonesia in accordance with prevailing laws.
Sustainable Finance Comprehensive support from the financial services industry to achieve sustainable
economic growth by aligning economic, social and environmental interests.
Swap A swap transaction is an agreement between two parties to exchange sequences of
cash flows for a set period at a premium or discount rate, with the exchange rates
agreed on the date of the transaction.
The Federal Reserve The central banking system of the United States.
Regional Inflation Control An inter-institutional team that monitors regional inflation and identifies issues
Teams (TPID) relating to managing inflation.
Regional Digitalisation A coordination forum for relevant institutions and stakeholders at the provincial
Acceleration and Expansion and regency/city administrative levels established to nurture innovation, accelerate
Team (TP2DD) and expand the electronification of government transactions, as well as encourage
digital economic and financial integration to create and maintain integrated financial
efficiency, effectiveness, transparency and governance.
Trade Repository A trade repository collects and maintains the records of derivatives, thereby assisting
the regulator monitor any increase in systemic risk.
Economic Transformation A continuous process aimed at orienting the economy towards sectors with higher
productivity or to increase productivity in a sector.
Institutional Transformation Transformation that entails strengthening the organisation and work processes,
human resources and work culture as well as digitalisation.
Macroprudential Policy An economic theory postulating that it is impossible for a central bank to achieve
Trilemma three macroprudential policy objectives simultaneously, namely financial system
stability, balanced intermediation as well as market efficiency and inclusiveness.

Payment System Policy An economic theory postulating that it is impossible for a central bank to achieve
Trilemma three payment system objectives simultaneously, namely creating a healthy,
competitive and innovative payment system industry, developing 3I (integrated,
interconnected and interoperable) infrastructure as well as creating healthy, efficient
and fair market practices.
Triple Intervention A rupiah stabilisation strategy through intervention on the spot market, providing
foreign currency liquidity for hedging instruments through DNDF, as well as
purchasing SBN in the secondary market to maintain adequate rupiah liquidity.
Trusted Money Currency that is trusted and relied upon by the public.
Twist Operation Bank Indonesia policy to buy/sell SBN in the secondary market, sell short tenor SBN
and buy long tenor SBN to increase the attractiveness of short-term SBN yields
for foreign portfolio investment inflows and create a flatter long-term SBN yield
structure.
Electronic Money A means of payment in electronic form issued on the basis of the value of money that
has been deposited in advance.
Fit for Circulation Genuine rupiah currency that meets the quality standards for circulation set by Bank
Indonesia.
Unicorn A start-up company with a valuation of more than USD1 billion, typically engaged in
the software or technology sectors.
US Treasury US Treasury Securities, government bonds issued by the Federal Reserve of the
United States of America to fund federal spending as an alternative to tax.
Volatile Food (VF) Components of the consumer price index that are volatile, being heavily influenced by
transient shocks, such as harvest failures, transportation disruptions and international
factors, for example, oil price shocks.
Unqualified Opinion An unqualified opinion is given by the auditor if there are no l mitations in the scope
of the audit and no significant exceptions regarding the fairness and application
of accepted accounting principles in the preparation of financial statements in all
material respects, as well as consistency in the application of general accounting
principles and adequate disclosures in the financial statements. Therefore, the
financial statements are considered to present fairly the financial positions and
business results in accordance with generally accepted accounting principles.
White paper An informational written report or guidelines to highlight an issue and the proposed
solutions.
Yield The ex-ante return

Arrangement

List of Abbreviations
Abbreviation Explanation Abbreviation Explanation

2EC Effective, Efficient, and Compliance BCSA Bilateral Currency Swap
3T Frontier, Outermost and Remote Arrangement
3T Transparent, Programmed and BI7DRR BI 7-Day Reverse Repo Rate
Scheduled BISAID Bank Indonesia Data Input
4FS Four Strategic Functions Application System
4K Price Stability, Supply Availability, BI-ANTASENA Bank Indonesia Integrated
Smooth Distribution and Effective National Metadata-based
Communication Reporting Application
4P HR Planning, Fulfilment, BI-APS Bank Indonesia - Auction Platform
Development and Maintenance System
ABFPS Automatic Banknote Feeding and BI-ETP Bank Indonesia - Electronic
Packaging System Trading Platform
ACCD Appointed Cross Country Dealer BI-FAST Bank Indonesia - Fast Payment
ADB Asian Development Bank BI-IRS Bank Indonesia - Integrated
Resumption Site
ADG Member of the Board of
Governors BI-RTGS Bank Indonesia - Real Time Gross
Settlement
AKURAT Integrated Rupiah Currency
Demand and Analytics Application BIS Bank for International Settlements
AL Liquid Assets BI-SSSS Bank Indonesia - Scripless
Securities Settlement System
AL/DPK Liquid Assets to Third-Party Funds
BISIP Bank for International Settlements
AP Administered Prices
Investment Pool
APBN State Revenue and Expenditure
BKK Institutional Policy Mix
Budget
BKU Main Policy Mix
APEC Asia-Pacific Economic
Cooperation BMEB Bulletin of Monetary Economics
and Banking
API Application Programming
Interface BNM Bank Negara Malaysia
AR Augmented Reality BO Back Office
AS United States of America (USA) BOP Balance of Payments
ASDP River, Lake and Ferry BoT Bank of Thailand
Transportation BPD Regional Government Banks
ASEAN Association of Southeast Asian BPK Audit Board of the Republic of
Nations Indonesia
ASEAN+3 ASEAN Plus Three BPPU Money Market Development
ASPI Indonesia Payment System Blueprint
Association BPPUR Rupiah Currency Management
ATMR Pasar Risk-Weighted Assets (RWA) for Blueprint
Market Risk BPRS Sharia Rural Banks
Bansos Social Aid bps Basis Points
Bappebti Commodity Futures Trading BSA Bilateral Swap Arrangement
Regulatory Agency BSBI Bank Indonesia Supervisory Board
BBI Proudly Made in Indonesia BSI Bank Sharia Indonesia
BBM Fuel Oil BSNT Noncash Social Assistance

Arrangement

BSPI Indonesia Payment System EBOPS Extended BOP Services
Blueprint EC Executive Committee
BTT Unexpected Expenditures ECB European Central Bank
BUK Conventional Commercial Bank EKD Digital Economy and Finance
BUP Implementing Business Entity EKU Estimated Money Demand
BUS Sharia Commercial Bank EMEAP Executives’ Meeting of East Asia
BWI Indonesia Waqf Board (BWI) Pacific Central Banks
BWI Proud of Travelling in Indonesia EMEs Emerging Market Economies
Movement #DiIndonesiaAja ESG Environmental, Social and
CAR Capital Adequacy Ratio Governance
CBDC Central Bank Digital Currency ETP Electronic Trading Platform
CBP Rupiah Love, Pride, Understanding the ETPD Electronification of Regional
Rupiah Government Transactions
CBS Core Banking System EVP Employee Value Proposition
CCP Central Counterparty FAS Financial Access Survey
CCyB Countercyclical Capital Buffer FCBD Finance and Central Bank
CDIS Coordinated Direct Investment Deputies
Survey FDI Foreign Direct Investment
CEMUMUAH Fast, Affordable, Convenient, FEB Faculty of Economics and Business
Secure and Reliable FEKDI Indonesia Digital Economy and
Covid-19 Coronavirus Disease 2019 Finance Festival
CPO Crude Palm Oil FESyar Sharia Economic Festival
CPIS Coordinated Portfolio Investment FFR Federal Funds Rate
Survey FinTech Financial Technology
CWLS Cash Waqf-Linked Sukuk FK-PPPK Coordination Forum for
Daring Online Development Financing through
DC Datacentre Financial Markets
DF Deposit Facility FMCBG Finance Ministers and Central
Bank Governors
DGI Data Gaps Initiative
FMI Financial Market Infrastructures
DHE Foreign Exchange Proceeds of
Exports FO Front Office
DID Regional Incentive Fund FOMOBO Front Office, Middle Office, Back
Office
DJBC Directorate General of Customs
and Excise FSB Financial Stability Board
DKW Regional Cash Depot FSI Financial Soundness Indicators
DNDF Domestic Non-Deliverable G20 Group of Twenty
Forwards GIFA Global Islamic Finance Awards
DPK Third-Party Funds GNPIP National Movement for Food
DPR-RI People’s Representative Council of Inflation Control
the Republic of Indonesia GWM Statutory Reserve Requirements
DRC Disaster Recovery Centre HIMBARA Association of State-Owned Banks
DSRS Dynamic Systemic Risk HLM High-Level Meeting
Surveillance HTM Held to Maturity
DTU General Transfer Fund HPAV Forex Management Results


HVC Halal Value Chain KKI Karya Kreatif Indonesia or
IAEI Indonesian Association of Islamic Indonesia Creative Works
Economists KKP Government Credit Card
IAG Interagency Group on Economic KNEKS National Islamic Economy and
and Financial Statistics Finance Committee
IFSB Islamic Financial Services Board KPDHN National Blacklist Management
IHK Consumer Price Index (CPI) Office
IILM International Islamic Liquidity KPK Corruption Eradication
Management Corporation Commission
IIP International Investment Position KPMM Minimum Capital Adequacy
Requirement
IKU Key Performance Indicator (KPI)
KPP Group of Potential Employees
IKK Consumer Confidence Index (CCI)
KPPU Business Competition Supervisory
IKN Capital City of Indonesia
Commission
IMF International Monetary Fund
KPSH Supply Availability and Price
IMFC International Monetary and
Stabilisation
Financial Committee
KPWD Debit Draft Exchange Coordinator
IN2MOTIONFEST Indonesia International Modest
Fashion Festival KSSK Financial System Stability
Committee
IndONIA Indonesia Overnight Index
KUR People’s Business Loan
Average
LAKU Complete, Accurate, Up to Date
INFRATANI Integrated Farming with
Technology and Information LBS Locational Banking Statistics
IRFCL International Reserves and LBUT Integrated Commercial Bank
Foreign Currency Liquidity Report
ISEF Indonesia Shari’a Economic LCBSA Local Currency Bilateral Swap
Festival Agreement
ISEI Indonesian Economist Association LCS Local Currency Settlement
ITSM Information Technology Service LCT Local Currency Transactions
Management LF Lending Facility
JCR Japan Credit Rating LIKE IT Indonesia Flagship Financial
JIMF Journal of Islamic Monetary Literacy Program
Economics and Finance LKTBI Bank Indonesia Annual Financial
JPKI Global Financial Safety Net (GFSN) Statements
Juara Expor Export-Oriented Horticultural LPS Indonesia Deposit Insurance
Business Network Corporation (IDIC)
KAD Inter-Regional Cooperation LRUK Rupiah Banknote Residue
KADIN Indonesian Chamber of Commerce LSB Non-Bank Institution
KB Joint Decree LTV/FTV Loan/Financing-to-Value Ratio
Kemenkeu Ministry of Finance LU Economic Sector
KIP Central Information Commission MAS Monetary Authority of Singapore
KKBI Bank Indonesia Credit Card MBS Mortgage-Backed Securities
MDR Merchant Discount Rate

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MKTBI Bank Indonesia Task Continuity PMA Foreign Direct Investment (FDI)
Management PMA Procurement Maturity
MMS Multi-Matching System Assessment
MoU Memorandum of Understanding PPID Information and Documentation
MRBI Bank Indonesia Risk Management Officer
MUI Indonesian Council of Ulama PS Strategic Program
NKRI Unitary State of the Republic of PSBI Bank Indonesia Social Program
Indonesia PSRU MSME and Real Sector
NPI Indonesia’s Balance of Payments Empowerment
NPL Non-Performing Loans PTB Study Assignment Program
OECD Organisation for Economic Co- PTBI Bank Indonesia Annual Gathering
operation and Development PUR Rupiah Currency Management
OIC Organisation of Islamic QEDS Quarterly External Debt Statistics
Cooperation QRIS Quick Response Code Indonesian
OJK Financial Services Authority Standard
OKP Supporting Operational Activities RDG Board of Governors Meeting
OM Monetary Operations (MO) Repo Repurchase Agreement
OP Market Operations RIM Macroprudential Intermediation
OPT Open Market Operations (OMO) Ratio (MIR)
P2DD Accelerate and Expansion of Local RISIBI Bank Indonesia Information

Digitalisation Systems Masterplan
P2JF Person to Job Fit RIVIBI Bank Indonesia Digital Innovation

Masterplan
P2SK Financial Sector Development and
Strengthening RPIM Macroprudential Inclusive
Financing Ratio
PADG Board of Governors Regulation
RRH Daily Average
PBB Performance-Based Budgeting
RTGS Real-Time Gross Settlement
PBI Bank Indonesia Regulation
RUU Draft Bill
PBR Low-Income Earner
SBDK Prime Lending Rate
Pemda Regional Government
SBN Government Securities
PEN National Economic Recovery
SBP Strategic Business Plan
Perpres Presidential Regulation
SBPI Inclusive Financing Securities
PFMI Principles for Financial Market
Infrastructures SBSN Government Sharia Securities
PINTAR Rupiah Currency Exchange and SCR Sovereign Credit Rating

Withdrawal Application SDA Natural Resources
PIP Payment System Infrastructure SDDS Special Data Dissemination
Operators Standards
PJP Payment Service Providers SDM Human Resources
PKLN Commercial Foreign Loans SDNKI Secretariat of the National
PLM Macroprudential Liquidity Buffer Financial Inclusion Board
PLTSa Waste-to-Energy Power Plant SEACEN South East Asian Central Banks


SEAVG South East Asia Voting Group SUSPI Indonesia Public Sector Debt
SEKDA Provincial Economic and Financial Statistics
Statistics T20 Think Tank 20
SEKI Indonesian Economic and TE Issuance Year
Financial Statistics TF Task Force
SI Information Systems TIK Information and Communication
SISMONTAVAR Monitoring System for Foreign Technology (ICT)
Currency Transactions Against the TNI-AL Indonesian Navy
Rupiah TP2DD Regional Digitalisation
SITS Statistics of International Trade in Acceleration and Expansion Team
Services TPID Regional Inflation Control Team
S.I.A.P QRIS Healthy, Innovative and Safe to TPIP Central Inflation Control Team
Use QRIS
UE Electronic Money
SKNBI Bank Indonesia National Clearing
UKA Foreign Banknotes
System
ULN External Debt
SME Subject Matter Expert
UMKM Micro, Small and Medium
SNAP National Open API Payment
Enterprises (MSME)
Standard
UNCTAD United Nations Conference on
SNKI National Financial Inclusion
Trade and Development
Strategy
UPB Large Denomination Currency
SNR Serial Number Reading
UPK Small Denomination Currency
SP Payment System
URK Special Rupiah Currency
SPE Retail Sales Survey
UU Act of Law
SPI Integrity Assessment Survey
UUS Sharia Business Unit
SPIP Indonesia Payment System and
Financial Market Infrastructure Valas Foreign Currency
Statistics VF Volatile Food
SP-PUR Payment System and Rupiah WB World Bank
Currency Management WGIIS Working Group on International
SSKI Indonesia Financial System Investment Statistics
Statistics WPKT Taxpayers with Specific Criteria
Stranas PK National Strategy for Consumer WMS-RS Warehouse Management System
Protection with Racking System
SukBI Bank Indonesia Sukuk WTP Unqualified Opinion
SULNI Indonesia External Debt Statistics yoy Year-on-Year
SupTech Supervisory Technology

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Arrangement

Bank Indonesia
Address : Jl. M.H. Thamrin No. 2
Jakarta 10350 Indonesia
Phone : 1500 131 (Local or International)
E.-mail : [email protected]
www.bi.go.id BankIndonesiaOfficial @bank_indonesia bank_indonesia Bank Indonesia Channel Bank Indonesia

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The cover of the Bank Indonesia Institutional Report 2022 depicts the Bank Indonesia

Construction of the Bank Indonesia Representative Office building in Bali Province

The Bank Indonesia Institutional Report is an institutional performance report to fulfill

1. Economic Outlook and Challenges 14

1.1. Global Economy 17

2. Bank Indonesia Policy Response 22

2.1. Bank Indonesia Policy Stance 25

3. Bank Indonesia Institutional Transformation 32

3.1. Policy Transformation 35

4. Bank Indonesia’s Performance in 2022 48

2 Bank Indonesia Institutional Report 2022

5. Bank Indonesia Board of Governors and Institutional Arrangement 82

6. Bank Indonesia Supervisory Board 102

List of Bank Indonesia’s Policies and Regulations 110

Picture 01. Bank Indonesia Green Institutional Initiative up to 2022 42

Table 01. Statement of Financial Position 99

Bank Indonesia Institutional Report 2022

Laporan Tahunan Bank Indonesia 2022

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Jakarta, July 2023

Bank Indonesia Governor

Bank Indonesia Institutional Report 2022 7

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Front row from left to right:

Second row from left to right:

Bank Indonesia Headquarters Building

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Bank Indonesia Institutional Report 2022 11

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Bank Indonesia Institutional Bank Indonesia is also implementing a planned,

Bank Indonesia Institutional Report 2022 13

Bank Indonesia Representative Office

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Bank Indonesia Institutional Report 2022 15

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Bank Indonesia Institutional Report 2022 17

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1.2. Domestic Economy market uncertainty. The position of reserve assets at

Bank Indonesia Institutional Report 2022 19

20 Bank Indonesia Institutional Report 2022

Bank Indonesia Institutional Report 2022 21

Bank Indonesia Headquarters Building

22 Bank Indonesia Institutional Report 2022

Bank Indonesia Institutional Report 2022 23

Bank Indonesia monetary policy, comprising liquidity policy, exchange

Ultimately, the Bank Indonesia policy mix, which is implemented in synergy

24 Bank Indonesia Institutional Report 2022

National Coordination Meeting (Rakornas) on Inflation Control 2022

Bank Indonesia Institutional Report 2022 25

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Bank Indonesia Institutional Report 2022 27

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Bank Indonesia Institutional Report 2022 29

Sharia Economic Festival (FESyar) Sumatera Region 2022

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Bank Indonesia Institutional Report 2022 31

Bank Indonesia Representative Office

Laporan Kelembagaan Bank Indonesia 2022

Laporan Kelembagaan Bank Indonesia 2022

BANK INDONESIA INSTITUTIONAL