No. 28/160/DKom
Bank Indonesia utilises currency waste to create new value through a circular economy approach. Concrete measures taken by Bank Indonesia include collaboration with micro, small and medium enterprises (MSMEs) to process shredded banknote waste into souvenirs. Bank Indonesia also partners with energy suppliers, enabling shredded banknote waste to be utilised as an additional energy source for electricity generation or industrial purposes. Currently, 72% of shredded banknote waste is processed. Moving forward, Bank Indonesia is targeting all shredded banknote waste to be processed through circular methods by 2027. Through these measures, Rupiah currency management will increasingly benefit both the environment and the economy.
Opening the series of Indonesia Sovereign Rupiah Festival (FERBI) 2026 events at Istora Senayan on 14th June, the Deputy Governor of Bank Indonesia, Ricky P. Gozali, stated that currency management is facing increasing environmental and sustainability demands. Rupiah currency management does not end when currency is no longer fit for circulation. Once currency is no longer fit, the question is no longer merely how to destroy it, but how to create new value through productive utilisation. In response to these developments, Bank Indonesia is implementing an environmentally friendly transformation in the printing, distribution and destruction of Rupiah currency. Bank Indonesia's currency management innovations have received the International Association of Currency Affairs (IACA) Awards 2026.
Central banks in the region also continue to pursue innovation. Bank Negara Malaysia (BNM) processes shredded banknote waste into various products. The Bank of Thailand uses more durable banknote materials to extend the circulation period of currency fand reduce the need to reprint damaged or worn banknotes, while supporting greater efficiency and sustainability in currency management. Such experiences demonstrate that sustainability is becoming an integral part of currency management in various countries.
These experiences were discussed at BRIDGE 2026, an international dialogue forum for the currency management ecosystem, held at Istora Senayan, Jakarta, on 13th August. The forum was hosted by Bank Indonesia as part of FERBI 2026. The dialogue was also attended by central banks and monetary authorities from India, Malaysia, Thailand, the Philippines and Papua New Guinea, as well as international cash industry participants.
Jakarta, 17th August 2026
Communication Department
Ramdan Denny Prakoso
Executive Director
