Indonesian Parliament Cracks Down on Cash Payment Refusal

Legal Tender Status Reaffirmed

The Chairman of the Indonesian Parliament's Budget Committee (Banggar DPR), Said Abdullah, has strongly reaffirmed that the Indonesian rupiah in cash form is a legal tender that must be accepted throughout the country. This statement comes in response to a recent incident where an elderly woman was refused cash payment at a local store when purchasing bread.

Legal Basis and Implications

The regulation is clearly outlined in Law No. 7/2011 concerning Currency, which explicitly states that rupiah is the official currency and legal means of payment in Indonesia. Said emphasized that this law applies to all transactions within the country, mandating businesses to accept rupiah cash payments. The DPR's stance aims to protect consumers' rights and ensure compliance with existing financial regulations.

Consumer Protection and Business Compliance

This reaffirmation by the DPR highlights the importance of consumer protection in Indonesia's retail sector. Businesses are required to comply with this regulation to avoid legal consequences. The incident that prompted this statement serves as a reminder to merchants about the legal obligations regarding payment methods.