New-Look Indonesian Rupiah Notes Set to Be Issued Starting in 2014
Grace Dwitiya Amianti
Future rupiah bank notes will contain the finance minister’s signature and the words “Bank Indonesia” will be replaced with “Negara Kesatuan Republik Indonesia,” Indonesian for “Unitary State of the Republic of Indonesia,” a government official said on Tuesday.
The change was made by a 2011 currency law, which has been in effect since last week. It requires that the printing and destruction of rupiah notes be coordinated with the government.
Previously, those responsibilities were solely handled by the central bank.
“The rupiah is a sovereignty symbol that must be respected and for Indonesian citizens to be proud of,” central bank governor Darmin Nasution, said in a statement on Tuesday.
Darmin said the new notes would bear the changes on Aug. 17, 2014.
He also said that Bank Indonesia would coordinate with the Finance Ministry on the printing and destruction of rupiah notes to ensure that the process did not interfere with the country’s monetary policy or affect the economy.
“The number of rupiah to be printed will be decided by taking into consideration, among other things, inflation assumption, economic growth, the type of note being printed, and the number of notes up that will be destroyed,” the central bank governor said.
Printing of the rupiah must be carried out by state enterprises, the new law states. If there are not any state enterprises that can do the job, other institutions will be allowed to step in as long as they do it with the cooperation and under the coordination of state firms.
In addition, the law requires a coordinating body between the government and the central bank to deal with counterfeit rupiah notes.