History of Money Indonesia

The Early Independence

Economic situation in Indonesia at the beginning of independence marked by hyperinflation caused by the circulation of multiple currencies that are not controlled, while the Government of Indonesia does not have currency. There are three currencies are declared valid by the government of Indonesia on October 1, 1945, the Japanese currency, the currency of the Dutch East Indies, and currencies De Javasche Bank.

Indian currency and currency De Dutch bank Javasche


Among the three currency exchange rate experienced a sharp decline in the Japanese currency. Circulation reached four billion, so the Japanese currency was a source of hyperinflation. Walks of life who suffer most are farmers, because they keep most of the Japanese currency.

The Japanese currency (Dai Nippon Teikoku Seihu)


Economic chaos hyperinflation is exacerbated by the policy due AFNEI Commander (Allied Forces Netherlands East Indies) Lieutenant General Sir Montagu Stopford is on March 6, 1946 announced the implementation of NICA currency in all parts of Indonesia that has been occupied by troops AFNEI. This policy was protested by the government of Indonesia, for violating the agreement that each party should not be issued a new currency for the absence of a political settlement. But the protest was ignored by AFNEI. AFNEI NICA currency used to fund military operations in Indonesia and to disrupt the national economy, so it would appear a crisis of confidence of the people of the ability of the government of Indonesia in overcoming the national economic problems.

Because the protest is not met, then the government of Indonesia issued a policy that prohibits the people of Indonesia using NICA currency as a medium of exchange. This step is very important because NICA currency circulation outside the control of the government of Indonesia, making it difficult for national economic recovery.

The NICA Currency

Therefore AFNEI not repeal the application of the NICA currency, then on October 26, 1946 the government imposed a new currency RI ORI (Oeang Republic of Indonesia) as legal tender throughout the territory of Indonesia. Since that time the Japanese currency, the currency of the Dutch East Indies and De Javasche Bank currency is no longer valid. Thus there are only two currencies that applies the ORI and NICA. Each of these currencies are recognized only by the issuing. So the ORI is only recognized by the government of Indonesia and the currency is only recognized by AFNEI NICA. The people turned out to give more support to the ORI. This has political implications that people become more pro-government Affairs of the interim government that is supported only AFNEI NICA.

To set the rate of ORI with foreign currencies in Indonesia, the government of Indonesia on November 1, 1946 to change the leadership of the Foundation Center Margono Djojohadikusumo Bank to Bank Negara Indonesia (BNI). Several months earlier the government has changed the Japanese occupation government bank Ginko Shomin to Bank Rakyat Indonesia (BRI) and Tyokin Kyoku a Postal Savings Office (KTP), which changed its name in June 1949 became the Post Bank savings and finally in 1950 became the State Savings Bank (BTN). All bank serves as a general bank run by the government of Indonesia. Its main function is to collect and distribute public funds and service providers in the payment of traffic.

Establishment of Bank Indonesia

Long time the arrival of the west, the archipelago has become a center of international trade. While in mainland Europe appear modest banking institutions, such as the Bank van Leening in the Netherlands. The banking system is then carried by the expanding western archipelago nation at the same time. VOC in Java in 1746 founded the Bank van De Leening who later became De Bank Courant en Bank van Leening in 1752. The bank is the bank’s first-born in the archipelago, the precursor of the banking world in the future. On January 24, 1828, the Dutch East Indies government established the bank circulation under the name De Javasche Bank (DJB). Over the decades, the bank operates and develops according to a ruler of the Kingdom of the Netherlands oktroi, DJB Wet enacted until 1922.

During the Japanese occupation has stopped banking DJB and the Dutch East Indies for a while. Then the revolution came, the Dutch East Indies have dualism of power, between the Republic of Indonesia (RI) and the Nederlandsche Indische Civil Administrative (NICA). Banking was split in two, DJB and Dutch banks in the region whereas NICA “Jajasan Poesat Bank Indonesia” and Bank Negara Indonesia in the RI. Round Table Conference (RTC) in 1949 put an end to the conflict Indonesia and the Netherlands, established and DJB as a central bank for the Republic of Indonesia (RIS). This status continued to survive until the return of the unitary state of Indonesia. Next as a sovereign nation and country, Indonesia’s central bank nationalized. So since July 1, 1953 DJB transformed into Bank Indonesia, the central bank for the Republic of Indonesia.

Source of Bank Indonesia and http://www.uang-kuno.com/2008/03/sejarah-uang-indonesia-1.html


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