Indonesian currency, rupiah, has a long history that stretches back to the colonial period. Due to periods of uncertain economy and high inflation, the currency has been reassessed several times.
Video History of the Indonesian rupiah
800-1600 Uang Asli, Jawa dan Cina
Products such as the first coins found in Indonesia date from the 9th century Buddhist Buddha dynasty and were produced in Indonesia until the 12th century: gold and silver mass ( gold is modern Indonesian word for "gold"), tahil and kupang , often illustrated with the letters ma for masses or flower images of sandalwood. Also used in this period is the Mudis of Lesser Sunda Islands, a series of Indo-Pacific beads, produced by the Sriwijaya kingdom of Sumatra, which spread to Kalimantan, Java and to the eastern islands of Indonesia Maluku). ) in the 13th century. In the eastern islands the beads were kept as heirlooms until now, using Chinese-made beads after the defeat of Srivijaya. The Majapahit kingdom, which became dominant in Java and Sumatra from the late 13th century, received, with the arrival of Chinese merchants, hidden copper coins known as cash. This is then imitated in Indonesia using lead or tin. Maps History of the Indonesian rupiah
1600-1942 Dutch colonial money
As Europeans began arriving in Indonesia, they carried gold coins from Portugal and Venice and Spanish silver dollars from Mexico, Peru and Bolivia, the latter being the main trading coins on the archipelago for several hundred years. The Dutch East Indies Company was granted a trade monopoly on the Dutch East Indies in 1600 and under the leadership of Jan Pieterszoon Coen gained effective governance of the region around Batavia in Java, their capital, with an area of ​​influence that increased over time, and which was eventually expanded by the Dutch conquest into the 20th century to include almost everything from what is now Indonesia.
The Dutch East Indies Company in the 17th century imported mainly silver coins, in the form of silver coins 1, 2, and 6 Dutch stuiver, as well as Spanish dollars (the most popular trading coins) and Dutch trading currencies. They help provide smaller changes by selling lead to cash candy, but generally do not produce or import it themselves.
Due to the lack of tin supply, in 1724 the Company began to produce its own copper coins, VOC branded coins, which were printed in six Dutch provinces and imported in large quantities for 18 and into the 19th century.. There was an intermittent effort on the VOC silver coin, but most of the Dutch and Spanish silver imports, which had a higher value in the Indies, were used. Although most of the coins imported, (mainly) silver and also some 'rupee' gold coins were printed locally in the 18th century and early 19th century.
The first bank paper appeared with the establishment of De Bank Courant en Bank van Leening in 1752, and a number of problems were made over the next sixty years, all of which tended to lose value over time due to lack of coins to support paper.
The VOC went bankrupt in 1800 and its territory was nationalized by the then government of the Republic of Batavia, issuing its own duet and making coinage problems in 1802. Duits were printed in large quantities in Surabaya between 1814 and 1840 of imported silver from the Netherlands. In 1854, the Dutch East Indies Guilders/Guilders were deflected, money replaced with pennies and a series of coins from ½ cents to ¼ guilders were issued, all printed in the Netherlands. Larger denominations - ½, 1 and 2 ½ in guilders in silver, and 5 and 10 guilders in gold - were Dutch regular issues and circulated alongside the Indian denominations. This same coin series continued to be released until independence in 1945.
The government stopped the inflationary bank paper by publishing a government paper in 1815, drawn on June 30, 1861. De Javasche Bank, the central bank of the Dutch East Indies, eventually became Bank Indonesia, established in 1828, subject to regulations much stricter than previous banks, and remain a solvent.
1942-1949 Japanese invasion, and Indonesian independence - the dawn of hyperinflation in Indonesia
Japanese invasion
In 1942, the Japanese invaded the Dutch East Indies, taking over the whole country and Dutch Guinea in March 1942. On their invasion ships, they brought their own problems about local money, guilders. They liquidated banks, including 'De Javasche Bank' and canceled debt obligations. Records issued by the 'De Japansche Regeering' (Japanese government) will be the legal means of payment from March 1942 (although the records are still in effect), with notes printed from 1 cent to 10 guilders, by new (as of April 1942) bank Nanpo Kaihatsu Ginko.
The Japanese money should have the same value as the old Dutch money, with the old money to withdraw from the use, but the invaders quickly printed excessive amounts of money, and it quickly became apparent that hyperinflation was ongoing, and hence people were hoarding Dutch money. By the end of the War, Japan had led to a massive increase in the inventory of paper money, which was 230 million guilders before the war, to several billion postwar. This, coupled with post-war Dutch government action, caused inflation and massive damage to the country's stability and economy.
As their work continued, in 1944 the Japanese had decided that their long-term strategic interests were better by encouraging Indonesian nationalism, thus publishing a second set of records printed in Indonesian, the Dutch East Indies Roepia.
The existing stock of the records was still used by the new Indonesian government until they had printed their own money in 1946, while the record actually continued to be printed until early 1946 in parts of eastern Indonesia (where the Nationalists had no control), as a temporary measure until the Dutch re-established their pre-war government throughout the scattered islands.
Dutch Dutch/Allied reconciliation
The Dutch government, which is in exile in London, has made preparations for the end of the war, in which he hopes to regain control of his colonies. To do so, in recognition of the fundamentally changing financial condition in which they will be issued, it is anticipated that a government problem will be necessary, given the weakening position of the private De Javasche Bank, which has previously issued banknotes.
The record was ordered in December 1942, printed in the US by Printing Company Bank Security Notes. The record was dated 'March 1943' and labeled as 'Nederlandsch-Indische Gouvernementsgulden' printed in Dutch, along with additional Indonesian texts denoting the denominations of notes and the word 'roepiah'. Denominations are 50 cents to 500 guilders.
At the end of the war, the 'Dutch East Indies Civil Administration' ally (army), began to regain control of the old East Indies. This began issuing the 1943-date money ('NICA guilders'), starting from 1944 in New Guinea, and later in Maluku and Kalimantan, both recaptured before the Japanese surrender on August 14, 1945. In areas under NICA control, Dutch before the war triggered. Despite the fact that NICA has control over the outside of Indonesia, its authority to determine the value of money is limited by the economic weakness of the government and the Netherlands itself. As a compromise, the NICA re-monetized pre-war records 10 guilders and below, higher notes were not reissued to reduce the inflationary effect of having pre-war currencies and new NICA money in circulation.
After the Japanese surrender, the government was given official control over the state institutions by the Allies, and the DJB, who survived the war better than expected, had rejoined on October 10, 1945.
Although Allied military action in East Indonesia and Kalimantan (Borneo) have introduced NICA guilders into circulation in these areas, the transition back to Dutch controls did not go smoothly on the main islands of Java and Sumatra and Allied military action gained control. only in some beach bags, where Japanese money is used, large quantities are kept in Japan.
'Red money' ('red money' (a 10 dollar note is red, and there may also be blood references, as money is unpopular among Indonesian revolutionaries)) faces a nationalist opposition to the principle of money spent by the Dutch, condemned by fact that regardless of the stated intention of adopting a postwar postwar stance, the records were printed in the Netherlands with a great picture of the Dutch Queen Wilhelmina.
When the NICA money first appeared in Java, Soekarno issued an immediate decision, October 2, 1945, to declare that the NICA record was illegal.
Due to the lack of control necessary to spend money effectively, the Dutch decided that it would not be advisable to spend NICA money in cities in Java and Sumatra and ban their imports.
With Japan still acting as a local government in Java and Sumatra, NICA needs to keep the value of Japanese money as much as possible, because it's the only way for them to pay bills arising in maintaining order. In many cases, Japan is instructed to simply print more money, and the amount of Japanese currency in circulation continues to rise rapidly: inflation originating from Japan continues with increasing speed. In February 1946, 2 billion of Japan's money from 2.5 billion taken in state printing, had been spent, an enormous amount of the total pre-war circulation of less than 500 million guilders.
Due to the diminishing supply of money, the destruction of the printing plates in the primary printer for reform, and the anxiety among European troops on payments in Japanese money, which lost value constantly, it was finally decided to issue NICA guilders in Java on March 6, 1946. Prewar records from 5 guilders and below just to maintain validity, and Japanese money is redeemed at level 33 to 1.
This action infuriated the Indonesians, who sentenced him to five years in prison for his use. One army regiment even went to execute people who brought money, raised their bodies in public with money attached to them.
Due to the difficulties associated with the use of money, the supply of food and essential goods from the interior of the impoverished Republic, and the NICA money in June 1946 had fallen to a black market value of only 10 of the Japanese money (which still favored money throughout Java), Dutch to enforce tariffs.
Indonesia's first Rupiah - in Java
Although the Republican government firmly opposed the use of Dutch NICA money, seeing its exceptions as an important tool in the struggle against the Dutch, its own money issue was slightly more considered.
After their October 2nd proclamation on NICA money, it stated the following day that Japanese money as well as pre-NICA Dutch money would be a legitimate means of payment in the Republic, with both holding the same value, even though the enormous amount of Japanese money increased, the fact that the Dutch money is no longer supported by gold reserves, gold has been evacuated in the early part of the war.
Indonesians have been advised by the UK that the Indonesian money issue will be financial and political suicide, but their determination is strong. Their first record, dated 1945, is being prepared when the Indonesian printing press works and all the money in it is confiscated by the Allies (who currently include the British, assigned to restore order) in their successful attack on Jakarta in January 1946.
The print plates survived the attack and with the Dutch decision to finally introduce the NICA guardian to Java in March 1946 which was seen as an offensive act suppressed by Indonesia with reprints, actions triggered, such as with the Netherlands, by the depleting Japanese inventory. money from bank vaults in the city they control (about 600 million Japanese roepiah).
With Indonesia's resources increasingly less suited against the Dutch, and only G. Kolff is small & amp; Co. Malang printers they have to print money, printing money needed several months, until July 1946.
The Government of the Republic declared that Indonesia's new central bank was Bank Negara Indonesia, established on July 5, 1946, occupying the office of De Javasche Bank in Yogyakarta, a republic fortress.
The Indonesian rupiah was first issued by the proclamation of October 3, 1946. In the previous year, Japanese money had become a vital channel of Republican goods to Dutch pockets, but the decision ended this: all Japanese money was to be deposited by Republicans at 30 October 1946. By granting depositors to explain how the money was earned, they would be entitled to a new 'Oeang Republik Indonesia' (ORI) with a value of 50 Japanese Rupiah to 1 rp ORI. Extraordinary debt was revalued on the basis of their date of origin, with debts incurred before 1943 (before Japanese induced inflation) converted on par, debt from 1943-1945 at 20 to 1, and those arising that year at the same 50 equal to 1. comparison.
This deflationary policy originated from Dutch geldzuivering Dutch Finance Minister Pieter Lieftinck (later Executive Director of the World Bank and International Monetary Fund (IMF)), who has trained Sumitro Djojohadikusumo (who has returned to Indonesia along with many other Indonesian educated after the War) in the field economics at universities in the Netherlands. As in the Netherlands, every citizen is given 1 rp to start a new money circulation. Money not deposited after October is declared worthless.
One new dollar is said to be worth 0.5 grams of gold, the same rate as the pre-war Dutch currency (containing 3 grams of pure gold in 5 guilders and 6 in 10 guilders coins), although this is not supported by metal reserves, only the power proclamation buy.
Due to the fear that the money deposited would not be returned, there was panic buying goods in the days after the decision, and food prices (in Japanese money) jumped 30 times, with the black market exchange rate to NICA gulden rising to 120 versus 1.
With the end of Japanese money in the main Republican stronghold of Java as a channel between the Republic and the Dutch enclave, the Dutch were forced to act, ending the Japanese money exchange on October 30, 1946, to avoid the unchanged flood of Japanese money. brought in for exchange with NICA guilders. Thus in Java at this point the two currencies circulated, the Dutch-Dutch NICA 1943-date, in the Dutch-controlled areas, and the ORI of 1945 in Indonesia.
Indonesian resistance is highly fragmented, strongest in rural villages, and lacks the ability to supply money, Japanese money continues to be used in Banten, West Java, as well as all Sumatra republics.
There has never been an official exchange rate between NICA guilders and Indonesian rupiah, but with popular support for a strong rupiah, 1 ORI rupiah was initially assessed on 5 guilders of NICA. The currency, however, rapid depreciation, fell to 2 guilders within 1 week, as the market measures fair value, and at the end of 1946 to par. In March 1947, it was worth half a guilder, and on July 3 the guilder. This inflation is caused by the Republican government, which prints money to meet its obligations in the face of its own limited income. In January 1947, 310 million rupiah had been printed in the Javanese republic alone, half of all the money supply of prewar guilders.
Due to limited government printing capacity, he focused on printing on 100 rupiah banknotes. The limited inventory of the smaller note means that the 100 rupiah notes are worth less than the combination of smaller records. Rampant fraud will only aggravate the inflation of Indonesian money.
Although laws are enforced to stop the hoarding of goods, currency confidence can not be sustained. In Jakarta, Indonesian money is more valuable than elsewhere, as a consequence of demand for imported goods originating from the NICA. The Republic's attempts to defend the value of Indonesian money (which is largely supported by the supply of rice from the interior of Java) can only slow, not stop, decrease.
Over the years of the Indonesian revolution, three banknotes followed, all printed in Yogyakarta, two in 1947 alone, with the fourth, much more limited, issued in 1948.
Dutch money 1947-1949
The new money was issued by the Dutch from July 1947, in the form of a complete Dutch/Indonesian guild/roepiah notes from 'De Javasche Bank'. This note is dated 1946, and consists of 5 (violet), 10 (violet), 25 gulden notes (red).
The supply of these items was soon exhausted, and the government remonetized all pre-War DJB and government money as well, circulating unpublished papers still kept in the safe. This led to a 50% increase in the money supply from 1947 to 1949. The government also issued bronze and silver coins in original pre-war denominations, printed from 1943 to 1945 in the United States, but due to inflation, coins were more valuable as scrap, and many are melting into household goods and silver artifacts. As a result, he published a treasury note, from December 1, 1947, in denominations of ten and 25 cents. This record succeeds because in Indonesian (with Dutch and Indonesian vice versa) and declared to have been issued by 'Indonesia' (becoming NICA), and continued to be utilized by the Indonesian government even after independence, until 1951, when Indonesia earned its first coin.
Local banknotes of the Republic of Indonesia, 1947-1949
Since the Republican government never had effective control over Indonesia outside Java, from 1947 the law was passed on August 26, 1947 that regional posts in Sumatra and Java could spend their own money to replace the Japanese money, in exchange for ORI the true imaginable when the peace period finally enabled him, partly to inhibit the circulation of the NICA guilders. At least thirty towns and districts in Sumatra spend their own money, with about a dozen cities in Java doing so, starting with Banten in December 1947.
The entry is marked with the place of issuance and in a different design from the national money.
1949-1958: Recognition of independence , and the new 'Indonesian Rupiah'
1950-1952 Indonesian Independence recognized
In November 1949, the Dutch-Indonesian Round Table Conference, held in The Hague, negotiated peace and recognition of independence for the Indonesian state, as the United States of Indonesia (United States of Indonesia), a federation of states comprising the Republic of Indonesia (republic). Java and Sumatra), along with fifteen other states.
The agreement stipulates that the Dutch must retain economic influence over the republic until Indonesia has paid the debt borne by the NICA in the fight against the war with Indonesia. It was agreed that the Dutch-owned De Javasche Bank should be restored as Indonesia's central bank, despite the hatred among Indonesian nationalists, the Indonesian-established BNI became a development bank.
A brief edition of the notes issued by the United Republic of Indonesia, beginning in June 1950, consisted of notes 5 and 10 rupiah, but with the incorporation of separate states into the Republic of Indonesia in March and April 1950, with the official declaration of the unitary Republic of Indonesia confirmed on August 17, 1950, this money was short-lived.
Pieces of Sjafruddin
The new "United States of Indonesia" decided to discuss the amount of money in circulation (because the agreement was required by the government to accept NICA guilders as a valid payment instrument as well), which had reached 3.9 billion rupiah. Various kinds of money supply, including local and national rupiah, Japan, before the war, and Dutch NICA money.
Because of the large number of currencies, the finance minister, Sjafruddin Prawiranegara, tried to reduce the money supply by half. This reform was established from 19 March 1950. People had to cut all their records from 5 guilders and half, with the left half replaced with new banknotes, and half the rights to government bonds with a 3% coupon. In addition, half of all bank deposits above 400 rupiah were also forcibly used to buy government bonds.
As part of the exchange, local money and the Republic of Indonesia were also destroyed, with all the old notes of the Republic of Indonesia no longer valid after 1 May 1950. The first 125 rupiah "Republic of Indonesia" (issued in Java) was exchanged for 1 Rp new DJB notes. The higher exchange rates apply to local currencies, some of which have been severely devalued by over-printing of money by the army. Newly-devalued Acehnese Rupiah can be redeemed at 1.75 to 1.
1951: De Javasche Bank Nationalization - transformation to Bank Indonesia
Due to the desire to wipe out the influence of the DJB, dominated by the Dutch and feel the unwanted foreign influence in the country, and the inflamed tension caused by the Dutch's refusal to transfer the Dutch territory of Nieuw Guinea to the Republic, the government moved to nationalize the Dutch bank. This action, promulgated on 30 April 1951, involved the lifting of the old Java Bank Act of 1922, preventing non-Dutch citizens from having shares in banks, and negotiating with the Amsterdam Stock Exchange. The purchase was approved at 120% of the value of the bank (valued at 9 million Dutch guilders), with Dutch opinion stating that the bank is a true Indonesian asset, and therefore nationalization is a valid action. The nationalization was completed on 15 December 1951, with DJB being an Indonesian government agency.
In addition to this nationalization act, on 3 October 1951, the Republic passed an Emergency Law concerning a legal currency, to repeal the Indische Muntwet Act of 1912, which still governs the prevailing currency in Indonesia. The consequence of the new law is that old Dutch coins will be void for payment, and Indonesian rupiah coins will be issued with the value of 1, 5, 10, 25, and 50 cents under the control of the Indonesian government. Low Dutch denominations must be withdrawn on time. This Act sees the first issued Republic of Indonesia money, denominations of 1 and 2½ rupiahs, proceeds to divide between denominations under 5 guilders and 5 and above between state banks and central banks initiated by the Netherlands.
1953-1958: Birth of Bank Indonesia
In order to stop the problem of dejected 'De Javasche Bank' money, the government settled the Indonesianization of DJB, with the bank becoming Bank Indonesia on 1 July 1953 through the Basic Act of Bank Indonesia 1953. The Bank has responsibility for 5 rupiah paper bills and above ( such as DJB), and Bank Indonesia's first money emerged from 1953.
1959-1965: currency devaluation and spiral inflation
The economy was hit by inflation, prices tripled from 1953 to 1959, and Soekarno wanted to devalue his currency. Disagreement over this policy led to the end of Loekman Hakim as Governor of Bank Indonesia on July 31, 1959: He was replaced by Soetikno Slamet.
With an unwilling ex-governor, the official exchange rate was devalued on 1 August 1959 by 75% from 11.4 to 45 to US $ (unofficial rate about half of it, and already 3.8 to the dollar in 1949). In addition, Rp 500 and Rp 1,000 were devalued 90% on 24 August 1959 to 50 and 100 Rp. The actual records affected are '1946' 500 guilders, and '1952' culture and 'animal' records of 500 and 1000rp records.
Thus, as of September 1959, the biggest record circulating in Indonesia is 100 rupiah.
1965-1991: 1000 to 1 rupiah revaluation
The rampant inflation, which was 27% in 1961, but jumped to 174% in 1962, by 1965 was 600%, had seen the largest denomination banknotes increase 100-fold, from 100 rupees in September 1959, to 1000 rupees in May 1960, to 5,000 in October 1963 and finally 10,000 rupiah in August 1964. As a result, during the 1965 Indonesian political turmoil, the 'new rupiah' was introduced on 13 December 1965, at a rate of 1000 units long. The price index at the end of 1965 was calculated at 363 times higher than it was in 1958, and the price had risen about seven times over the previous 12 months. In real terms (ie taking into account inflation), a worker in Jakarta is estimated to have earned 40 percent of his income in 1958. Although the devaluation in the records is 1,000 to 1, prices are taken down only 10 times.
This devaluation has the side effects of the unification of Indonesian Rupiah with the Riau Rupiah (West Irian survived until 1971). The new rupiah denomination ranges from 1 cent (not even worth) to 100 rupiah, with 500 and 1000 rupiah added soon after.
In 1968 Suharto's New Order was established, and Bank Indonesia, in 1968, was granted the sole right to issue banknotes (including notes under 5 rupiahs) and coins (formerly a central government issue), which ranged from 1 to 1000 rupiah. In 1970, Indonesia added 5,000 and 10,000 rupiah bills to the range in 1970, while, with inflation finally restrained, coins were reintroduced, ranging from 1 rupiah, and ranging up to 100 rupiah. September 1975 saw the sub-100 rupiah note withdrawn permanently from circulation.
1992-1999: before and after the financial crisis
In 1992, the value of the rupiah was less than a fifth of what had been worth when the 10,000 rupiah note had been introduced in 1970, so that the 20,000 rupiah paper money was produced, the largest record ever in Indonesia.
The Asian financial crisis of 1997-1998 reduced the value of the rupiah by more than 80% in a few months and was a major factor in the overthrow of President Suharto's government. The Rupiah has traded at around 2000-3000 rupiah per 1 USD, but reached the lowest of 16,800 rupiah per dollar in June 1998. The currency, which was relatively stable in previous years, has a crushed value. The government did not take any action to demonstrate or reassess the banknote, "Directors 1998" only redesigned the 10,000 and 20,000 rupiah notes.
The "1999 Board of Directors" saw the new Soepratman design for 50,000 rupiah, replacing Suharto's warning note, who resigned after more than 30 years as Indonesia's president behind the crisis.
The banknote line was extended with a new denomination of 100,000 rupiah in 1999, when it was worth about US $ 12.
500 million records from the 100,000 rupiah polymer notes were printed, for all published in November 1999. This is part of the Indonesian millennium bug preparation, lest there be a big demand for cash after the new year. Polymers are chosen because, according to Bank Indonesia, plastics will be more difficult to forge and will last longer. However, the record was unpopular in the bank because the calculating machine could not calculate it accurately and there was a problem with the money attached to each other due to the heat of the engine, and Indonesia had re-used the notepad.
2000-2005: redesign for all Indonesian banknote denominations
"2000 Board of Directors" brings the new 1,000 rupiah, with 100 and 500 rupiah banknotes stalled due to the dramatic devaluation of the Indonesian currency.
"Directors 2001" redesigned 5,000 rupiah, while "The Association of 2004" ended the banknotes of 100,000 rupiah, replaced with paper design, and the issuance of new, safer banknotes of 20,000 rupiah.
The most recent change to Indonesian money is "Board of Directors 2005", which redesigns the 10,000 and 50,000 rupiah notes.
2016: all new denominations of banknotes and coins in Indonesia
On December 19, 2016, Bank Indonesia launched all new designs of banknotes and rupiah coins. They started placing the text of the Republic of Indonesia on their paper money, rather than Bank Indonesia in the previous design. This practice started early on a 100,000 year paper bill 2014 based on 2004 design.
Plan to redeem Rupiah
In August 2010 Bank Indonesia proposed the redenomination of the rupiah by deducting the last three digits (divided by 1000). Redenomination is intended to simplify daily transactions, which often reach millions of rupiah. The plan to be considered will be completed by 2015 soonest, but most likely by 2020. This will reduce the exchange rate with the US dollar from about 13,500 rupiah to 13.5. The plan has raised public concerns that monetary policy may reduce the value of the currency. The Governor of Bank Indonesia Darmin Nasution immediately announced that the redenomination of the planned national currency would not result in financial losses because the action would only reach some of the zeros of the current denomination.
References
Source of the article : Wikipedia
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