Counterfeit Rupiah Prevention Strategy
Rupiah is the monetary unit and legal tender in the unitary Republic of Indonesia, a symbol of national sovereignty that must be proudly respected by all residents. According to its rupiah management mandate, Bank Indonesia has a mission to meet the currency needs of the public of appropriate denominations, fit for circulation, delivered just in time through a central bank driven mechanism in line with the direction of cashless policy, while prioritising efficiency and the national interest. One of the challenges Bank Indonesia faces in terms of rupiah currency management is the circulation of counterfeit rupiah.
The Currency Act (No. 7 of 2011) defines counterfeit rupiah as an item of which the material, size, colour and/or design resembles rupiah that is illegally produced, formed, printed, duplicated, circulated or used as a payment instrument. Rupiah counterfeiting is illegal, incurs public losses and can erode public trust in the rupiah.
Pursuant to the Currency Act, the Government seeks to eradicate counterfeit rupiah through the Coordinating Board for Counterfeit Rupiah Eradication (Botasupal). Botasupal consists of the State Intelligence Agency (BIN), National Police of the Republic of Indonesia, Attorney General, Ministry of Finance and Bank Indonesia. As an element of Botasupal, Bank Indonesia plays an active role in the prevention of counterfeit rupiah based on three salient pillars as follows:
- Preventive, measures include rupiah currency standardisation, such as the size, colour, design and security features, while utilising a database in Bank Indonesia's Counterfeit Analysis Centre (BI-CAC) in order to enhance the quality of the security features.
- Pre-emptive, measures seek to increase public understanding concerning genuine rupiah through education and building awareness concerning the importance of maintaining rupiah banknotes in order to better identify authenticity. In addition to face-to-face education, the public can also download various social media concerning the features of genuine rupiah from the Bank Indonesia website (link booklet CIKUR).
- Repressive, measures are taken in coordination with all Botasupal elements in order to optimise the legal sanctions against perpetrators of criminal acts against the rupiah, counterfeiting in particular.
In accordance with the Currency Act, Bank Indonesia is the sole authority to determine rupiah authenticity and the public may request clarification from Bank Indonesia concerning any suspicious rupiah currency. Anyone who finds suspicious rupiah currency in their day-to-day transactions are encouraged to take the following measures:
- Maintain the physical state of the suspicious currency and avoid passing it on.
- Report the find to the nearest bank branch or police station accompanied by the physical currency or request direct clarification from the closest Bank Indonesia branch office.
Any public reports of suspicious rupiah currency received by Bank Indonesia directly or through another bank will be investigated further. Suspicious currency that is not genuine cannot be exchanged. On the other hand, suspicious currency that is deemed genuine can be exchanged in accordance with prevailing regulations.
