OVERVIEW

In a bid to emulate the success of many countries around the world in establishing cashless societies,[1] the Indonesian government is currently moving in the direction of limiting transactions involving physical currency, commonly referred to as cash transactions. There are a number of reasons for thinking that cash-transaction limitations will benefit society at large, in comparison with bank notes moving between individuals without any intermediary institutions being involved. One reason is that cashless transactions will limit the possibilities for financial crimes such as corruption, payment of gratuities, tax evasion, money laundering and funding of terrorism being committed, as well as offering early warnings of such activities.