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Previously, the barter system was still used before the Hindu-Buddhist kingdom. However, the means of payment was then applied as a substitute for the barter system.
At that time, the first money that was valid in Indonesia was a variety of simple materials. For example, in Papua they use money in the form of shells, beads in Bengkulu and Pekalongan, and Belicung in the Bekasi area. Means of payment made progress during the Hindu-Buddhist kingdom, especially in terms of materials and design.
Some examples of currencies in various kingdoms in Indonesia are as follows.
The currency of the Kingdom of Jenggala is Krisnala or Ma money which was used in the 1040s. Ma's money is the oldest currency in Indonesia which is made of gold and silver.
The currency of the Kingdom of Buton is Kampua which was circulated in the 14th century which was made of cotton cloth measuring 140 mm x 170 mm.
The currency of the Majapahit kingdom is the Gobog currency made of copper metal.
Currency of the Age of Islamic Kingdoms
After that, in the 15th century when Islam was developing, this religious patterned currency circulated. Islamic kingdoms in the archipelago, such as Samudra Pasai, Banten, Sumenep, to Palembang, used a currency with a similar pattern.
The most distinctive feature is the Arabic script on the side of the money. Interestingly, the currency of the Islamic empire in the archipelago is interchangeable. In fact, for 1 Spanish Real at that time it was equal to 16 Aceh Dirhams. Dirhams are the currency of the Samudra Pasai Kingdom in the 13th century.
Currency Used in Colonial Times
During the colonial era, the popular Spanish Real was abolished by the Dutch colonialists to become the Dutch Real. The goal is to replace all foreign currency, as well as dominate the economy. Apart from that, there is also a Dutch silver coin called Rijksdaalder which is used in Indonesia. This money then became the standard means of payment throughout the archipelago.
After that, in 1727, the VOC issued a copper coin called Duit. Duit was the first coin in Indonesia that was officially circulated by the VOC government. These copper pennies were made to replace Cassie China.
Then, certificate-shaped banknotes were launched in 1748 by the VOC. The nominal value of the certificate varies with the Rijksdaalder unit from 1 to 1,000. Rijksdaalder is the first paper money in Indonesia . Since then, the history of paper money has developed rapidly.
Currency During the Japanese Occupation
The currency that was in effect during the Japanese occupation was Invasion Money. The first issue was still in Dutch, in 1942 to be precise. It was only in the second issue that it was published with the caption “Government of Dai Nippon'. After the allied troops landed on September 29, 1945 at Tanjung Priok, the invasion currency was banned from being used again. Instead, the NICA currency is used.
5 Currency in the Early Period of Independence
In the early days of independence, there were several currencies circulating in Indonesia. The following is the development of currency in Indonesia from time to time since independence.
Indonesia's condition at the beginning of independence was indeed very bad from various sides, including the monetary side because of the NICA (Dutch East Indies Civil Government) troops who entered the archipelago and occupied major cities in Indonesia.
Japanese banks were forced by NICA to issue Japanese Rupiah to fund their military operations and pay employee salaries. After that, in March 1946, a new version of money, namely NICA Money, was issued.
This has further exacerbated Indonesia's condition, moreover the Indonesian government is still unable to print its own money due to limitations both in terms of resources and funds.
On 5 July 1946, the Government finally declared that Bank Negara Indonesia would become the center of the new Indonesian bank. This bank is located at De Javasche Bank which is located in Yogyakarta.
Because the government was constantly being pressured to print its own currency, in October 1946, the ORI was issued. ORI is an acronym for Oeang Repoeblik Indonesia, which is the first paper money in Indonesia after Indonesia's independence.
Unfortunately, Indonesia's unfavorable situation has made the distribution of this currency full of obstacles. The distribution of ORI continues, even in a guerrilla manner and awakens a sense of nationalism among the Indonesian people.
Apart from being part of a guerrilla movement, to overcome the delay in distribution, the mandate was then given to the local government. The mandate contained an order to issue a local currency, which was later named ORIDA.
ORIDA has been in effect since 1947, and has been published in many provinces. Starting from Sumatra, Banten, Banda Aceh, to Tapanuli.
The change in the Indonesian government system to a union system also made its currency experience a similar thing. The Indonesian government since 1950 withdrew the distribution of ORI and ORIDA. Instead, it was the RIS currency since January 1, 1950.
RIS money does not last too long. The change back to the mode of government to a republican system also forced the government to withdraw RIS money.
Government and SBI money
In 1953, the Basic Law of Bank Indonesia Number 11/1953 was issued. It contained the authority of Bank Indonesia to issue and circulate notes in denominations of five rupiah and above. Meanwhile, the fraction below the nominal will be issued by the Government of Indonesia.
Then in 1963, through Law No.13/1963, Bank Indonesia finally became the sole institution for issuing and circulating money.
1953 was the first time banknotes issued by Bank Indonesia appeared. This money was printed at the printing press of Thomas De La Rue and Co, England. Meanwhile, the local printer NV Pertjeakan Kebajoran prints Rp. 10 and Rp. 25 denominations.
Riau Islands Money and West Irian
The use of the Malayan Dollar occurred in the Riau Archipelago due to geographical factors. To overcome this, the Riau Archipelago Rupiah was issued so that the territory of Indonesia uses the same currency .
In 1964, the Riau Islands rupiah was withdrawn from circulation, replaced by Indonesian rupiah. West Irian followed in using the rupiah currency in 1971 after using Gulden.
BI As Issuer and Currency Distributor
Both paper and metal money can only be issued by Bank Indonesia. This authority was also strengthened by Law No.23/1999 and amendments to Law no.3/2004.
That is the long history of the first money in Indonesia to this day. Hopefully this information is useful, huh! Find other information about finance and investment at Pintu Blog .
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