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Indonesia Keeps its Currency Current

Bank Indonesia Introduces a New Rp. 2,000 banknote.


Bali News:
Click Image to Enlarge

(7/13/2009)

Bank Indonesia placed into use on Friday, July 10, 2009, a new Rp. 2,000 note (US$0.20), destined to eventually supersede the Rp. 1,000 note and become the smallest denomination of paper currency.

The new bank notes carry a portrait of a South Kalimantan hero, Pangeran Antasari, on the face of the bills with traditionally dressed Dayak dancers displayed on the back of the bill.

Bank authorities point to the rising cost of living and cost of producing banknotes as prompting the decision to opt for a higher-valued bank note.

Printing presses are running at the national treasury with 500,000 new Rp. 2,000 notes scheduled to be in circulation by the end of August. By the end of the year 1.2 million of the notes will be on the streets with a value of Rp. 2.4 billion (US$2 million).

With the introduction of the new banknotes the government plans to reduce production of the Rp. 1,000 notes now in circulation, replacing them over time with Rp. 1,000 coins.

Indonesia currently has six different denominations of banknotes: Rp.1,000; Rp. 2,000; Rp.5,000; Rp.10,000; Rp.20,000; Rp.50,000; and Rp.100,000.


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