Financial Structure and Monetary Policy in Indonesia

  • S. Y. Lee
  • Y. C. Jao


Before the Second World War, the banking scene was dominated by three Dutch banks — Nederlandsche Handel Maetschappij, Nationale Handelsbank, and Escomptobank. Other foreign banks were Chartered Bank, Hong Kong and Shanghai Banking Corporation, Oversea-Chinese Banking Corporation and Bank of China. Indigenous commercial banks did not exist.


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Notes and References

  1. 2.
    See Bank Indonesia, Report for the Years 1960–1965 (Djakarta, 1968), pp. 52–4;Google Scholar
  2. and D. Cole, ‘New Direction in the Banking System’, Bulletin of Indonesian Economic Studies, Vol. V., No. 2, July 1969, pp. 60–9.CrossRefGoogle Scholar
  3. 14.
    Aritua Arief, Banking and Money in Indonesia: An Econometric Study (Jakarta: Aritua Arief Associates, 1978), pp. 18–19.Google Scholar
  4. 19.
    See Bank Pembangunan Indonesia, Operations of Bapindo, December 1979, pp.18–21.Google Scholar
  5. 21.
    See Bank Indonesia, Laporan Tahun Pembukuan, 1972/3–1976/7,Google Scholar
  6. and H. W. Arndt, ‘The Impact of the International Economic Crisis on the Indonesian Economy’, in the UN, Economic Bulletin for Asia and the Pacific, Vol. XXIX, No. 2, December 1978, p. 32.Google Scholar
  7. 28.
    For the statistical figures, see Bank Indonesia, Indonesian Financial Statistics, May 1980,Google Scholar
  8. and Bank Negara, Weekly Report, March 1980, p. 11. See also Anne Booth and Amina Tyabji, ‘Survey of Recent Developments’, BIES, July 1979, for a discussion of monetary adjustments after devaluation.Google Scholar
  9. 30.
    For an analysis of the income velocity and price change from 1951 to 1972, and the explanatory factors, see R. M. Sundrum, ‘Money Supply and Prices: a Re-interpretation’, Bulletin of Indonesian Economic Studies, Vol. IX, No. 3, November 1973, pp. 78–9.CrossRefGoogle Scholar
  10. 31.
    See J. M. Keynes, ‘Alternative Theories of the Rate of Interest’, Economic Journal, Vol. XLVII, 1937, pp. 246–7.Google Scholar

Copyright information

© S.Y. Lee and Y.C. Jao 1982

Authors and Affiliations

  • S. Y. Lee
    • 1
  • Y. C. Jao
    • 2
  1. 1.National University of SingaporeSingapore
  2. 2.University of Hong KongChina

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