Legal Tender - Rupiah, please!

The Government has been in the drafting phase of a new bill on legal tender for some time. The often tortuous route has seen a bill make the House of Representatives (DPR) in 2003 (see e-Alert 5/12/2003) where it was expected that expedited discussion and debate would occur. Simply, this did not happen as the bill was quickly overtaken by other more pressing legislation matters. The bill has resurfaced in a slightly modified format and is currently with the DPR's Legislation Board (Badan Legislasi) and it is expected that it will soon be forwarded to Commission XI for the discussion and debate that was expected to occur almost three years ago.

The Legislation Board of the DPR is currently soliciting input on the bill and this would appear to be the opportune time for business to voice any concerns it may have of the bill. The bill would allow for some currency transactions to occur in currency other than the Rupiah however the bill is clearly intending that the majority of transactions within Indonesia happen in Rupiah. The only exceptions will be those mandated in law and regulations.