Bank Indonesia Board of Governors Member Regulation Number 23 of 2026: Strengthening the Governance of the Circulation and Management of Rupiah Currency

Introduction

On 31 July 2026, Bank Indonesia (“BI”) enacted Bank Indonesia Board of Governors Member Regulation Number 23 of 2026 concerning Procedures for the Circulation of Rupiah Banknotes and Coins (“PADG 23/2026”). PADG 23/2026 was established to maintain the availability of high-quality and reliable Rupiah banknotes and coins through the regulation of the distribution and circulation of Rupiah Currency throughout the territory of the Unitary State of the Republic of Indonesia.

PADG 23/2026 reorganizes the governance of Rupiah Currency circulation by BI so that it is carried out effectively, efficiently, transparently, and accountably, and is aligned with developments in law and the strategic environment. With the entry into force of PADG 23/2026, several previous provisions concerning the exchange, deposit, and withdrawal of Rupiah Currency are revoked and declared no longer valid, including Bank Indonesia Board of Governors Member Regulation Number 19/13/PADG/2017 concerning the Exchange of Rupiah Currency and Bank Indonesia Board of Governors Member Regulation Number 19/19/PADG/2017 concerning the Deposit and Withdrawal of Rupiah Currency by Banks with Bank Indonesia.

Key Provisions

• Deposits, Withdrawals, and the Threat of Monetary Fines

As stipulated in Article 12, Banks must submit plans for Deposits and/or Withdrawals through the BISILK Application (Bank Indonesia Cash Services Information System) no later than 1 (one) Business Day prior to the implementation of the Deposit and/or Withdrawal at Bank Indonesia. Such plans are prepared based on information concerning liquidity positions and TUKAB (Interbank Rupiah Banknote and Coin Transactions) submitted to Bank Indonesia through the BISILK Application. Banks that fail to submit such information may not obtain Deposit services for ULE (Fit for Circulation Currency) and/or Withdrawal services at Bank Indonesia.

In the provision of Deposit services, Article 15 requires Banks to ensure the accuracy of the amount of Rupiah Banknotes and Coins deposited and to ensure that there are no Rupiah Banknotes and Coins of questionable authenticity. In addition, Banks are prohibited from depositing a mixture of ULE (Fit for Circulation Currency) and UTLE (Unfit for Circulation Currency) exceeding an average of 10% (ten percent) of the amount of Rupiah Banknotes and Coins deposited for each denomination within 1 (one) quarterly period, and are prohibited from mixing denominations and/or years of issue. Violations of these provisions may result in service restrictions and/or administrative sanctions, as detailed below:

• violations relating to the accuracy of the amount of Rupiah Banknotes and Coins may be subject to Deposit service restrictions;
• the discovery of counterfeit Rupiah Currency is subject to a written warning and a fine of Rp1,000,000.00 per banknote or coin;
• violations of the limit on the mixture of ULE and UTLE are subject to a written warning, and if a Bank has received 3 (three) written warnings, it is subject to a fine of Rp1,000,000.00 per Bank office; and
• the mixing of denominations and/or years of issue may be subject to restrictions on Deposit and Withdrawal services.

• Authenticity Verification of Currency through BI-CAC

Based on Articles 45 and 46, Bank Indonesia is the sole institution authorized to determine the authenticity of Rupiah Banknotes and Coins. Bank Indonesia provides an authenticity verification service for Rupiah Banknotes and Coins of questionable authenticity through the BI-CAC Application (Bank Indonesia-Counterfeit Analysis Center), which may be utilized by all branches of Banks performing operational functions, as well as head offices and branch offices of PJPURs performing Rupiah Banknote and Coin processing activities. Where the verification results establish that the currency is genuine, Bank Indonesia provides reimbursement in the amount of its nominal value, including where the currency is partially damaged, provided that it satisfies the criteria for replacement of UTLE. However, such reimbursement does not apply where the verification request is submitted for the purposes of an institution performing investigative and inquiry functions.

Where the verification results establish that the currency is counterfeit, Bank Indonesia does not provide reimbursement and will retain the counterfeit Rupiah Banknotes and Coins. Subsequently, findings of counterfeit Rupiah Banknotes and Coins are followed up through coordination with the Indonesian National Police and/or the body coordinating efforts to combat counterfeit Rupiah Currency. Accordingly, the BI-CAC Application serves as an official means for Banks and PJPURs to obtain certainty regarding the authenticity of questionable Rupiah Currency while also supporting the handling of findings of counterfeit Rupiah Currency.

• Criteria for the Replacement of Damaged Currency

Based on Articles 41 through 44, Unfit for Circulation Rupiah Currency (“UTLE”) consists of Worn Rupiah Currency and Damaged Rupiah Currency. Worn Rupiah Currency constitutes Rupiah Banknotes and Coins whose physical dimensions and form have not changed from their original dimensions, but whose condition has changed. Meanwhile, Damaged Rupiah Currency constitutes Rupiah Banknotes and Coins whose dimensions and/or physical characteristics have changed or differ from their original dimensions and/or physical characteristics. Replacement of UTLE is provided based on the condition and characteristics of the damage to the Rupiah Currency.

Replacement of Rupiah Banknotes and Coins is provided in the amount of their nominal value, provided that the authenticity markings remain identifiable or recognizable and the damage was not caused or suspected to have been caused intentionally. For Rupiah Banknotes that are partially damaged due to holes, partial loss, tearing, or crumpling, replacement is provided if more than 2/3 (two-thirds) of the original physical size remains and the requirements relating to physical integrity and/or serial numbers are satisfied. Meanwhile, for Rupiah Coins that are partially damaged due to holes or partial loss, replacement is provided if more than 1/2 (one-half) of the original physical size remains. For Rupiah Banknotes and Coins that are partially damaged due to burning, replacement may still be provided provided that their authenticity remains recognizable based on examination by Bank Indonesia. Conversely, Bank Indonesia does not provide replacement for Rupiah Currency that is lost or destroyed for any reason. The replacement provisions also apply mutatis mutandis to Rupiah Currency that has been withdrawn and recalled from circulation and to Special Rupiah Currency, provided that the applicable requirements are satisfied.

• Reporting Obligations of Banks

Based on Articles 67 and 68, Banks are required to submit reports to Bank Indonesia completely, currently, accurately, and in a timely manner, both periodically and incidentally where necessary. 

Transitional Provisions

Article 93 regulates transitional provisions concerning the imposition of administrative sanctions in the form of fines on Banks that commit violations in the Deposit of Rupiah Banknotes and Coins of questionable authenticity. Although this Regulation of the Board of Governors Member takes effect on 31 July 2026, the imposition of the fine referred to in Article 15 paragraph (3) letter b will only take effect from 1 January 2027. For violations committed prior to that date, Banks remain subject to administrative sanctions in the form of fines pursuant to Article 69 of Bank Indonesia Regulation Number 21/10/PBI/2019 concerning Rupiah Currency Management.

Article 94 stipulates that the provisions concerning periodic reports as regulated in Articles 70, 71, and 72 will only take effect on 1 January 2027. Accordingly, there is a transition period through the end of 2026 for Banks and relevant parties to prepare for compliance with reporting obligations and the implementation of sanctions in accordance with the new provisions.

Closing

With the entry into force of PADG 23/2026, the provisions governing cash services emphasize the importance of Banks’ compliance with Deposit and Withdrawal procedures, the authenticity and fitness of Rupiah Currency, reporting obligations, and compliance with administrative standards established by Bank Indonesia. Banks must ensure that each transaction and report is carried out in a timely and accurate manner and in accordance with the applicable provisions.

In addition, the existence of BI-CAC provides an official mechanism for verifying the authenticity of questionable Rupiah Currency, while the provisions concerning the replacement of Damaged Rupiah Currency provide certainty regarding the applicable criteria and replacement value. On the other hand, violations of the provisions may result in service restrictions, written warnings, or monetary fines, thereby necessitating strengthened internal controls and continuous compliance monitoring. Accordingly, consistent implementation of the provisions is important to maintain the smooth provision of cash services, the quality of Rupiah Currency in circulation, and the effectiveness of the Bank’s risk management and compliance.

The existence of a transition period until 1 January 2027 provides Banks and relevant parties with an opportunity to prepare for adjustments to the reporting provisions and the implementation of sanctions under PADG 23/2026. Therefore, Banks and PJPURs need to ensure internal readiness, including adjustments to procedures, systems, and compliance mechanisms.