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History Dark Ages of Indonesian Currency

2 Juli 2023   23:40 Diperbarui: 3 Juli 2023   03:31 473
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Bank Indonesia Museum, Jakarta – Indonesia

Establishment of Bank Indonesia

In 1951, there was a solid push to establish a central bank as a manifestation of the economic sovereignty of the Republic of Indonesia. Therefore, the Government decided to form a DJB Nationalization Committee. The nationalization process was carried out through the purchase of DJB shares by the Government of Indonesia, with an amount reaching 97%.

The Government of the Republic of Indonesia, on 1 July 1953, issued Law No. 11 of 1953 concerning Principles of Bank Indonesia, which replaced DJB Wet of 1922. On 1 July 1953, Bank Indonesia was officially established as the Central Bank of the Republic of Indonesia.

Law No.11 of 1953 was the first provision that regulated BI as the central bank. BI's task is not only as a circulation bank but also as a commercial bank through the provision of credit. At this time, there was a Monetary Council (DM) whose job was to set monetary policy. The Minister of Finance chairs the DM, with members being the Governor of BI and the Minister of Trade. Furthermore, BI is tasked with carrying out monetary policies determined by DM.

Banks As Revolution Tools

The Sabang-Merauke Fighting Bank Conference was held to align with the government's aspiration to submit as an instrument of revolution. The result, the Struggling Bank Doctrine, mentions, among other things, "the unity of spirit among the banking community" and "the integration between the banking struggle and the struggle of society." This concept led to integration between government banks, culminating in forming a Sole Bank under the name Bank Negara Indonesia.

 

Revolution of Several Periods of Rupiah Currency:

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PERIOD 1 (1953-1959)

Towards a Modern State

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