Digital Rupiah Will Be Regulated in the Financial Omnibus Law

digital rupiah illustration

Indonesia will have one additional legal means of payment soon, the digital rupiah. The presence of the new legal payment is deemed necessary to answer the challenges of technological change in the future.

It will be regulated in the financial omnibus law or the Financial Sector Development and Strengthening Bill (RUU PPSK).

This is as stated in the draft PPSK Bill version 5.0 which was published on Thursday (8/12/2022), in Part Six concerning Digital Rupiah.

In this case, Bank Indonesia as the central bank is the only institution authorized to manage digital rupiah. Thus reads Article 14A paragraph (2).

Referring to the regulation, it will be regulated in Article 2 paragraph (2) in Law Number 7 of 2011 concerning Currency (State Gazette of the Republic of Indonesia of 2011 Number 64, Supplement to State Gazette of the Republic of Indonesia Number 5223).

“The provisions of Article 2 are amended so that it reads as follows, paragraph (2) types of rupiah consist of paper rupiah, metal rupiah, and digital rupiah,” said the draft PPSK Bill Article 2 paragraph (2) based on the December 8, 2022, draft, quoted on Tuesday ( 13/12/2022).

The regulation explains that digital rupiah is rupiah in the digital form issued by Bank Indonesia (BI) and is a monetary obligation of BI.

“Digital rupiah has the same function as paper rupiah and metal rupiah, namely as legal tender in the territory of the Unitary State of the Republic of Indonesia, can be used as a medium of exchange and as a store of value,” he continued.

Furthermore, between Article 14 and Article 15 will be inserted 1 article, namely Article 14A. In this Article, the management of the digital rupiah includes planning, issuance, circulation, and administration.

Meanwhile, the management must pay attention to some aspects, starting from its provision as a legal means of payment in the Republic of Indonesia. Followed by the effectiveness of the implementation of BI’s duties in maintaining monetary stability, the payment system, and the financial system. Apart from that, attention must also be paid to support for technological innovation and digital economic and financial inclusion.

“Digital rupiah management must also pay attention to the aspects of developing a digital economy and finance that are integrated nationally, and the use of digital technology that can guarantee the security of data and information systems and protect personal data,” he continued.

In planning, Bank Indonesia coordinates with the government. Furthermore, further provisions issuance are regulated in a Bank Indonesia Regulation.