Central Banking Studies - Bank Sentral Republik Indonesia
January 17, 2019
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Coins
Coins
Money arrived as a replacement for the barter system that became outmoded over time and no longer met the needs of the people. When money first circulated it was known as uang barang. Each region had its own unique form of such currency. Papua, for instance, used certain shells as money, while beads were used in Bengkulu and Pekalongan. Notwithstanding, after the emergence of interregional trade, such currency was rendered ineffective. Items that were considered valuable in one region would not necessarily be worth the same in a different region. Therefore, a new form of currency was required that was valued by and desirable to the general public. This is the origin of currency made from metal coins.
 
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