Indonesia Strengthens Legal Stance on Rupiah and QRIS Acceptance

Mandatory Payment Acceptance Regulation

Indonesia has reinforced its legal requirement for businesses to accept both cash and QRIS digital payments in all transactions. The Currency Law (UU No. 7/2011) mandates that rejecting rupiah payments is illegal unless there are doubts about the currency's authenticity. Businesses that violate this regulation face penalties of up to Rp200 million and potential imprisonment for up to one year.

Legal Framework and Payment Systems

The legal framework supporting this regulation includes:

1. Currency Law (UU No. 7/2011) defining legal tender
2. BI Regulation No. 20/6/PBI/2018 governing electronic money
3. PADG No. 21/18/PADG/2019 implementing national QR code standards

Implications for Businesses and Consumers

The regulation emphasizes that both cash and digital payments through QRIS are equally valid as they both use rupiah. Businesses cannot refuse either form of payment unless they have legitimate concerns about the authenticity of cash. This policy aims to promote financial inclusion while maintaining the legal status of cash transactions.

Enforcement and Penalties

The Currency Law stipulates severe penalties for non-compliance. Businesses that refuse rupiah payments face fines up to Rp200 million and imprisonment for up to one year. These penalties underscore the government's commitment to maintaining the rupiah's status as legal tender in both physical and digital forms.