Bank Indonesia Withdraws Banknotes – As we already know, every country has one central bank. In Indonesia, the Bank of Indonesia (BI) is the Central Bank of the country. The duties of Bank Indonesia are responsible for making and implementing monetary policy, regulating and maintaining the smooth running of the banking system in the country, as well as supervising banking in Indonesia. Thus, BI also has the right to revoke and withdraw Rupiah banknotes from circulation.
However, people whose money will be revoked and withdrawn by Bank Indonesia can still exchange the money. Dear parents can exchange money at all Bank Indonesia offices and nearby banks. However, what is the reason BI withdraws and takes out Rupiah banknotes from circulation? Check out the following article to find out why.
Also Read: Interesting! Here are 6 Unique Facts about the 75 Thousand Indonesian Rupiah Banknote
BI Has Withdrawn Rupiah Banknotes, What's the Reason?
The revocation and withdrawal of the circulating rupiah currency must be carried out with full consideration by Bank Indonesia. Attached from the article by Detik Finance, Executive Director of the Department of Money Management, Marlison Hakim, explaining the reasons for withdrawing rupiah banknotes, including wanting to improve the technology and security features used in the rupiah currency. security features used in rupiah currency.
In addition, Bank Indonesia's policy to withdraw money was also carried out to reduce the rate of counterfeiting of rupiah currency, the comparison of the intrinsic value, which is higher than the value of money in Rupiah, to the public's need for types of rupiah denominations. It is also possible that the withdrawal of rupiah currency was carried out so that the composition of the money got simpler.
When should parents exchange withdraw banknotes from Bank Indonesia? The period of exchange of Rupiah currency itself is set for 10 years from the date of revocation, taking into account the following conditions:
- In the first five years, old money or withdrawn banknotes can be exchanged for new cash through commercial banks in Indonesia and Bank Indonesia.
- For the next five years (6th to 10th year), We can only carry out money exchange activities at Bank Indonesia.
Looking at the two requirements, parents cannot exchange Rupiah banknotes withdrawn by Bank Indonesia after passing the 10-year payback period. Therefore, parents need to pay attention to whether they have withdrawn banknotes that must be exchanged or not to avoid losses.
As of 30 August 2022, BI has officially withdrawn two Rupiah banknotes from circulation, namely the 1995 issue of special rupiah notes (URK), the URK Democracy Series in the Rp 300,000 denomination, and the URK Series President of the Republic of Indonesia Rp 850,000. The two coins are money specifically issued to commemorate the 50th anniversary of Indonesia's independence.
The URK denominations of Rp. 300,000 and Rp. 850,000 are in the form of coins made of 23-carat yellow gold and weigh 17 grams. On both coins, there is an image of the Garuda bird on one side with 50 stars circling the main idea. Meanwhile, under the image of the Garuda bird, the nominal amount of money on each coin is "850,000 RUPIAH" and "300,000 RUPIAH".
On the Rp 300,000 coin there is also a picture of President Suharto meeting with the public, while sitting on a chair. Under the main image, it says "50 YEARS OF RI". Meanwhile, the Rp. 850,000 coin has a picture of President Soekarno with the words "FIFTY YEARS OF INDEPENDENCE OF THE REPUBLIC OF INDONESIA" around the coin.
Parents can also exchange the two coins. As long as the physical rupiah coins are more significant than half of the original size and the characteristics of the money can be recognized as authentic, they will be compensated for the nominal value of the rupiah currency exchanged. Second, if the physical rupiah coin is equal to or less than half its original size, no replacement will be given.
So, how does Bank Indonesia withdraw banknotes circulating in the community? See further explanation below.
How Bank Indonesia Withdraws Banknotes From Circulation
As previously explained, BI will withdraw the old Rupiah. Initially, BI will issue a Bank Indonesia Regulation (PBI). In the URK denominations of Rp. 300,000 and Rp. 850,000, BI has given 24/15/PBI/2022, whereas of 30 August 2022, Bank Indonesia has withdrawn the two notes.
Then BI will provide information to the public through the official BI website to exchange the two currencies through a nearby branch office or directly to a Bank Indonesia office.
The last step taken was that BI would destroy all old rupiah notes so that they would no longer be in circulation in the community.
Also Read: Ponzi Scheme – Characteristics, How to Report, and Examples of Cases in Indonesia
Well, that's the explanation of the reasons why several rupiah currencies get withdrawn and how Bank Indonesia withdraws money from circulation. If you have both coins, remember to exchange them, okay?
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