Issuance of new editions of rupiah currency is governed by Bank Indonesia Regulation No. 6/14/PBI/2004 dated 22 June 2004 concerning the Issuance, Circulation, Revocation as Legal Tender, Withdrawal from Circulation and Destruction of the Rupiah Currency. Also part of this legal framework are the implementation regulations set out in Regulation of the Board of Governors No. 6/7/PDG/2004 dated 22 June 2004 concerning Management of Currency Circulation and Internal Circular Letter No. 7/84/INTERN dated 28 October 2005 concerning Instructions for Issuance of New Rupiah Currency.
The stages involved in the issuance and circulation of new issues of the rupiah currency are as follows:
1. Planning for New Issue of Rupiah Currency
Plans for new issues of the rupiah currency are approved in the Meeting of the Board of Governors. When issuing a new currency edition, Bank Indonesia performs a study to assess such factors as counterfeiting levels, intrinsic value, lifetime in circulation for the denomination and/or the needs of the public.
2. Currency Design and Specifications
Design and specifications for the new currency issue are approved by the Governor of Bank Indonesia and decisions concerning the design work are made by the Bank Indonesia Deputy Governor in charge of money circulation. At this stage, the design work is performed (1) in cooperation with a minting company or currency supplier, or (2) by Bank Indonesia itself or another party appointed for this purpose.
3. Printing or Minting
Using the design and specifications approved by the Governor of Bank Indonesia, a minting specimen is prepared by the minting company or currency supplier. The specimen, consisting of one banknote or sheet of uncut notes or one coin, will be used as a master for the minting company or currency supplier. The minting specimen is also accompanied by a technical description of the banknote or coin approved by the Director of Money Circulation.
4. Publication of Legal Basis
Each issue of new rupiah currency is based on legal provisions set out in a Bank Indonesia Regulation and an Internal Circular Letter. This Bank Indonesia Regulation on the issuance and circulation of new currency stipulates, among others, the type of currency, value, distinguishing features and date of validity as legal tender. The Internal Circular Letter states the date of issuance and circulation, shipment and bookkeeping and recording procedures.
5. Public Education and Dissemination
Before new rupiah currency is issued and placed in circulation, Bank Indonesia informs the public in a campaign involving public education and dissemination. Besides organising press conferences, Bank Indonesia holds training sessions for its own cashiers and cashiers employed by banks and other stakeholders. Public education campaigns include the distribution of posters and other dissemination of information on the marks of authenticity of the new currency, using leaflets, brochures, VCDs and other publications.