Bank Indonesia Addresses Controversy Over Cashless Payment Policy

Viral Video Sparks Public Debate

A recent viral video on social media has sparked public debate about cashless payment policies in Indonesia. The video showed a bakery employee refusing to accept cash from an elderly customer, insisting that they only accepted digital payments through QRIS. The incident drew widespread attention and criticism, particularly regarding the treatment of the elderly who may not be familiar with digital payment methods.

Bank Indonesia's Official Response

In response to the controversy, Bank Indonesia (BI) issued a statement clarifying the legal status of cash transactions. Ramdan Denny Prakoso, Executive Director of BI's Communication Department, cited Article 33, Paragraph 2 of Law No. 7/2011 on Currency, which prohibits anyone from refusing rupiah as a means of payment. The only exception is if there are doubts about the authenticity of the currency.

Balancing Digital Payments and Cash Transactions

While BI is actively promoting digital payments for their convenience, speed, and security, the central bank also recognizes the continued importance of cash in the Indonesian economy. Denny emphasized that the use of rupiah for transactions can be done through both cash and non-cash instruments, depending on the convenience and agreement of the parties involved.

Addressing Demographic and Geographical Challenges

BI acknowledges Indonesia's diverse demographic and geographical challenges, where cash remains a vital payment method in various regions. The central bank encourages the adoption of digital payments to reduce risks such as counterfeit money, but also stresses that cash will continue to be needed, particularly among certain segments of the population who are less familiar with digital payment systems.

Implications for Merchants and Consumers

The incident highlights the need for merchants to be aware of legal requirements regarding payment methods. While businesses are encouraged to adopt digital payment systems, they are still required by law to accept cash. Consumers, particularly those who are elderly or in rural areas, should be aware of their rights to use cash for transactions.