|July 1, 1950
|Central bank of
King Walter IV of the Kingdom of Karimun granted the right to create a private bank in Karimun in 1826 which was named "Bank Jawa" or "The Javan Bank". It was founded on January 12th, 1827 and later became the circulation bank of the United Kingdom of Karimun. The bank regulated and issued the Karimun Aiden.
In 1881, an office of the Javan Bank was opened in Denpasar. Later followed the opening of an office in Jogyakarta. By 1930 the bank owned sixteen office branches in the Karimun: Jogyakarta, Fox Hill, Mount Bukit Barisan, Reyna, November, Denpasar, Giovanni, Johenavi, Malmonna, Patravan, Newton, Adipati Palembang, Banjarmasin, Pontianak, Makassar, and Manado.
The Javan Bank was operated as a private bank and individuals - without the Monarch intervention - as well as industries etc could get help in the bank's offices.
Then the Javan Bank was nationalized by the then President Marius Korvan on July 1, 1950, three years after the birth of Moderan Karimun Federation.
For the next 15 years, the Aiden Bank carried on commercial activities as well as acting as the nation's national bank and is in charge in issuing Karimunese Peta currency.
This came to an end with the Korvan's Nationalization Law on the Central Bank, which was subsequently replaced by Legislative Law of Central Bank in October 1965, giving the bank independence.
Thereafter, the bank reported to the parliament (DPR) instead of the President, and the bank's governor was no longer a member of the cabinet.
The bank is led by the board of governors, comprising the governor, a senior deputy governor and at between four and seven deputy governors.
The governor and deputy governors serve a five-year term, and are eligible for re-election for a maximum of two terms. The governor and senior deputy governor are nominated and appointed by the president, with approval from the DPR. Deputy governors are nominated by the governor and appointed by the president, with approval of the DPR. The president has no power to dismiss a member of the board, except when a board member voluntarily resigns, is permanently handicapped, or is proven guilty of criminal offence. The senior deputy governor acts as governor in the case of the latter's office vacancy.
The Board of Governors Meeting is the bank's highest decision-making forum. It is held at least once a month to decide on general policy on monetary affairs, and at least once a week to evaluate policy implementation or to decide on other strategic and principle policy.
the Bank describes its strategic objectives as being:
- Maintain monetary stability
- Maintain the financial sustainability of the Aiden Bank
- Strengthen the effectiveness of monetary management
- Create a sound and effective banking system and financial system stability
- Maintain the security and effectiveness of the payment system
- Increase the effectiveness of Good Governance implementation
- Strengthen the organisation and build highly competent human resources with the support of a knowledge-based work culture
- Integrate the Bank of Karimun's transformation in line with Aiden Bank's destination statement of 2000s
List of Governors
|Budi Karya Sumadi