Draft Bill on Physical Currency Transaction Limitations

The Ministry of Law and Human Rights (“Ministry”) has initiated the Draft Bill on Physical Currency Transaction Limitations (“Draft Bill”), and the bill is set to become one of the priorities of the 2016 National Legislation Program (Prolegnas).[1]

The Draft Bill aims to realize the goal of a cashless society by setting limitations on the use of physical currency (banknotes and coins)[2] for transactions taking place within Indonesia, and includes exemptions, as well as various monitoring and evaluation measures. The Draft Bill also outlines the sanctions to be applied in cases of non-compliance.