BI Reminds Govt about Consequences of Signing Money
Wednesday, 25 May, 2011 | 10:04 WIB

TEMPO Interactive, Jakarta:Bank Indonesia has reminded the government about the legal consequences of the finance minister signing the new rupiah note. BI Deputy Governor Budi Rochadi said money issuance was BI’s obligation, as shown by the BI governor’s signature on each rupiah note.


If the finance minister signs the note, said Budi, the government must bear monetary duties. “There must be a debt acknowledgment,” said Budi in Jakarta on Monday.


This was stated as a response to the agreement between the government and the House of Representatives (DPR) concerning the government’s involvement in signing the bank note as of August 17, 2014. The finance minister will represent the government and sign the bills.


Budi added that by signing the bills, the government would bear the expenses for printing and circulating the new money. “The cost is quite high. Money circulation is the second biggest expense at BI,” he said.


Budi lamented that BI was not involved in the currency draft which may be ratified by the DPR’s meeting today. He said that if the government and DPR’s policy harmed BI or the people, a judicial review could be recommended to the Constitutional Court.


Finance Minister Agus Martowardojo said the government’s involvement in signing the rupiah bills showed it guaranteed the currency. Concerning the budget, Agus said it was decided that the costs would be borne by BI. He denied that BI was not involved in the discussion.



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