A new chapter in the history of Bank Indonesia as an independent central bank was ushered in on 17th May 1999 when the Bank Indonesia Act (No. 23 of 1999) was enacted, which has subsequently been amended by Act No.6 of 2009. The BI Act confers status and position as an independent state institution, free from interference by the Government and/or other parties, unless explicitly stipulated in prevailing laws.
In accordance with the BI Act, Bank Indonesia is a fully autonomous state institution in terms of formulating and implementing its duties and responsibilities. Furthermore, Bank Indonesia has a duty to reject or disregard any attempt of intervention or interference by any party, while external parties have no grounds or justification to interfere with task implementation at Bank Indonesia.
The special status and position conferred are necessary to ensure Bank Indonesia can effectively and efficiently implement its role and function as the monetary authority.