Bank Indonesia is the continuation of the De Javasche Bank, established in 1828. In 1953, the Central Bank Act (UUPBI) made Bank Indonesia the Central Bank of Indonesia. In 1968, the Central Bank Act appointed Bank Indonesia to support the Government in guarding the Rupiah’s value and to take on the role as a development agent. A new chapter in the Bank Indonesia’s history as an independent central bank was initiated when a new Central Bank Act (UU No. 23/1999 on Bank Indonesia) was enacted on May 17, 1999. The Act confers to the Bank the status and position as an independent state institution.
In its capacity as the central bank, Bank Indonesia has the single objective of achieving and maintaining stability of the Rupiah’s value. The stability of the Rupiah’s value comprises two aspects: one is stability of the Rupiah’s value against goods and services, and the other is the stability of the Rupiah’s exchange rate against other currencies. The first aspect is reflected in the rate of inflation and the second aspect is reflected in the Rupiah exchange rate against other currencies.
Knowledge Strategy
Bank Indonesia has 27 task forces and 37 Branch Offices throughout Indonesia. Bank Indonesia started its knowledge-based organization program in 2002. It is known as Organisasi Berbasis Pengetahuan (OBP) – a knowledge roadmap for the years up to 2008. The Bank’s strategy focuses on creating a corporate knowledge-based culture.
Part of the effort of developing BI’s knowledge workers is developing competency-based human resource management. The core competencies of Bank Indonesia are:
– Building trust.
– Continuous learning.
– Integrity.
– Teamwork/collaboration.
– Work standard.
The Bank’s approach to creating a knowledge-based organizations (KBO) requires every task force to develop a strategic map in the form of a balanced scorecard with key performance indicators agreed by both the Board of Governors and the initiative owner.
To achieve the objective of making Bank Indonesia a KBO, the program is under the responsibility of UKMI (the Special Unit of Information Management), and run by the Change Management (CM) team.
Knowledge Approach
Change Agents
A Change Agent is someone who is officially appointed by a task force leader to socialize and implement the Bank’s knowledge-based organization program in his/her respective office – either a branch office or a department in Head Office. The agents, currently numbering 200, work hand-inhand with staff at the Head Office to apply the principle of learning before, during, and after an activity.
Twice a year the Change Agents gather in Jakarta to coordinate their efforts, including sharing, and to receive a refresher course.
Agents are assessed by the Change Management team and are rewarded for achieving the standards (based on John Kotter’s eight principles in the management of change). They are sent to learn best practice in companies throughout the world which have experience successful change management.
Key Performance Indicators (KPI)
The Bank’s knowledge sharing program began in 2004 with the purpose of transforming individuals’ knowledge into organizational knowledge. In order to internalize and share knowledge and experiences, the CM team requires every person who finishes a course, such as quality and skills improvement (Peningkatan Mutu dan Ketrampilan – PMK), comparison study, job-internship or attachment programs, to make a summary and an evaluation of the program. Sharing is done via an intranet – called Knowledge LYNX.
The KPI is measured by the following formula:
The self-learning programs include, but are not limited to, book reviews, research, etc. All of the KPIs are shown in the form of a dashboard and evaluated before the Board of Governors. The LYNX system is designed to encourage the development and to protect the Bank’s knowledge assets, including the knowledge repository.
In line with this, Bank Indonesia runs a Begawanship program. This is a ‘codification’ project, particularly aimed at those individuals who are going to retire soon. It is designed to capture their knowledge and experiences in written or in audio/visual records.
Focused Initiative Program
This program, also known internally as KITA-KOMPAK or Kompetensi-Integritas-Tranparansi-
Akuntabilitas-Kebersamaan (Competency- Integrity- Transparency- Accountability- Togetherness), is designed to instill Bank Indonesia’s values in all its employees. The Change Agents also implement this program.
Inovation
Bank Indonesia has run an innovation generation competition, called Imovation, where BI staff are encouraged to think of ideas to improving the jobs in their area. For 2005, BI has cooperated with the Indonesian Ministry of Research and Technology under the theme “Go Open Source for Efficiency.”