In Indonesia itself, the development of banks began from the Dutch occupation period, with the establishment of three banks which were banks that collaborated with the government, namely De Javasche Bank NV, established on October 10, 1827, then nationalized by the Indonesian government on December 6, 1951 and finally became a central bank in Indonesia based on Act No. 13 of 1968. The second bank is the National Savings Bank (BTN). Based on Law No.20 of 1968 BTN officially became the new name of a bank called De Postpaarbank, established in 1898. Whereas the third bank, De Algemene Volkscreditietbank, was founded in 1934 in Jakarta (formerly Batavia), when Japan colonized Indonesia, the bank This was taken by a Japanese credit institution which was later changed to Syomin Ginko. After independence Syomin Ginko's name changed to Bank Rakyat Indonesia (BRI).
July 5 is a historic date for the development of banks in Indonesia because on July 5, 1946, stood Bank Negara Indonesia, which was the first state-owned bank born after Indonesian independence. BNI was subsequently designated as a development bank and was given the right to act as a foreign exchange bank in 1950 with direct access to foreign transactions. In the end, on July 5, the date of the establishment of Bank Negara Indonesia was celebrated as National Bank Day.
What Becomes Life Without a Bank?
Humans have a lot of life needs, ranging from basic needs such as shopping for food, clothing, homes to other needs such as watching a movie or on vacation. To be able to meet these needs we need money. Money here is a guaranteed and stable medium of exchange. Guaranteed meaning is recognized by all circles and stable value. Just imagine if the value of money is unstable and turbulent. For example, to shop for the needs of this month we need Rp. 500,000. - Suddenly next month when we will shop again with the same amount of demand the price has doubled. With the money that is in current possession, we can only get half of the items we need. This means that the value of our money has been halved. The value of money that changes in a short time will make people's lives more difficult. Continuous price increases like this are called inflation.
Inflation is not something we must avoid, but inflation is also necessary so that the economy continues to grow in a maintained corridor. However, very excessive inflation will actually trigger unrest for all people whether it is for the rich who are confused to invest, or for the poor who are confused to meet consumption needs. This is the role of Bank Indonesia in maintaining the stability of currency values with its monetary policy. This monetary policy is only owned by Central Bank, namely Bank Indonesia. The government has no power over this policy. In other words, Bank Indonesia keeps the inflation rate at the level that has been set together with the government. BI has several instruments that are used to suppress the inflation rate so that it does not fluctuate.
The most common instrument we hear is of course the BI or BI-rate policy rates. The BI Rate is determined through the Bank Indonesia Board of Governors Meeting. Determining the level of the BI rate will affect the inflation rate in the community. If the BI Board of Governors' Meeting sees indications of a warming economic risk, such as too much money in circulation, the current account deficit will increase, foreign debt will rise which will cause inflation pressure to be higher than the target range. For this reason, BI will raise the BI-rate to maintain public expectations so that people will tend to save their money in the Bank in the hope of obtaining large interest.
Not only maintaining prices in the city, BI also maintains price stability in the countryside. The way is by working with the government in a forum called the Regional Inflation Control Team (TPID). These various efforts are used by BI to maintain price stability in all regions in Indonesia for the common good. To maintain the nature of neutrality and independence, the Central Bureau of Statistics is present as a government institution that is spread throughout Indonesia independently without BI intervention or the authorities in calculating the value of inflation. BPS is no exception, the Bangka Belitung Islands.
The latest release rate of inflation carried out by BPS shows a different direction of inflation between the two cities in the Bangka Belitung Islands Province. On the Official News page Statistics published on July 1, 2019 yesterday showed that Pangkalpinang City experienced an inflation of 0.99 percent which allegedly occurred due to an increase in food prices by 3.89 percent, clothing group by 0.26 percent. Meanwhile in Tanjung Pandan City, it experienced deflation of 0.41 percent due to the decline in the foodstuffs group by 1.03 percent and the group, transportation, communication and financial services by 1.43 percent. Of course this is an interesting thing to look forward to what steps are taken by Bank Indonesia in responding to the different direction of inflation in the two cities that are still in this province.
Written by :
Royhan Faradis S.ST
Fungsional Statistisi BPS Kab. Belitung Timur
