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HOW BANK INDONESIA ISSUES NEW RUPIAH CURRENCY
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
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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
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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
