The New Currency Law

Thirty days have passed since the House of Representatives (“DPR”) turned the Bill on Currency into a Law (“Law”) on 31 May 2011, so the Law has finally been numbered. The Bill has been named Law No.7 of 2011 on Currency (Pursuant to Article 38 Law No.10 of 2004 on the Formation of Laws and Regulations).

The passage of the Law in essence serves to implement Article 23B of the Fourth Amendment to the 1945 Constitution (“Constitution”). Article 23B of the Constitution stipulates that currency types and values shall be provisioned by a regulation at the level of a law.

Until the passage of the Law, Indonesia had no law on currency. The objective of the Law is to advance the welfare of Indonesian citizens, by promoting Rupiah currency use in economic activities not just at the national level but also at the international level.