Executive Summary

Key insights and market outlook

Roti O's decision to go fully cashless has sparked controversy after a viral video showed staff refusing cash payment from an elderly customer. This practice violates Indonesian law (UU No. 7/2011) that requires businesses to accept Rupiah. The company claims the policy aims to provide convenience and promotions for customers. Critics argue it discriminates against non-digital users and violates consumer rights.

Full Analysis

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Deep Dive Analysis

Roti O Controversy Highlights Cashless Payment Dilemma in Indonesia

Background of the Controversy

Roti O, a popular bakery chain in Indonesia, has faced significant backlash after a video went viral showing one of their staff refusing cash payment from an elderly customer. The incident has sparked a heated debate about the company's fully cashless payment policy ¹

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Legal Implications

The practice of refusing cash payments is in direct violation of Indonesian Law No. 7/2011 regarding currency, which mandates that businesses must accept Rupiah as legal tender for all transactions within the country ²

. According to Article 33 of the law, refusing cash payments can result in penalties ranging from imprisonment up to 1 year to fines of Rp 200 million.

Company's Justification

Roti O management has defended their cashless policy, stating that it aims to provide greater convenience and various promotions for their customers. The company uses digital payment systems like QRIS, which is becoming increasingly popular among merchants in Indonesia ¹

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Public Reaction and Consumer Rights

The public reaction has been mixed, with some supporting the digital payment system for its convenience and others criticizing it for being exclusionary. Consumer protection groups, like YLKI, have expressed concerns that such policies violate consumer rights by limiting payment options. Rio Priambodo from YLKI emphasized that consumers have the right to choose their payment method as protected under consumer protection laws ⁵

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Industry-Wide Implications

The controversy surrounding Roti O has brought attention to a broader trend among businesses in Indonesia adopting cashless payment systems. While some merchants appreciate the reduced handling of physical cash and increased efficiency, others have raised concerns about excluding customers who are not digitally literate or who prefer cash transactions ⁴

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Conclusion

The Roti O controversy highlights the complex balance between embracing digital payment innovations and complying with legal requirements that protect consumer choice. As Indonesia continues its push towards a more digital economy, businesses must navigate these challenges carefully to avoid legal repercussions and maintain customer trust.

References