Money History of Indonesia

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					                                   Money History of Indonesia

                                       Early Independence

Economic situation in Indonesia at the beginning of independence was marked by hyperinflation
  due to the circulation of several currencies that are not controlled, while the Government of
   Indonesia does not have any currency. There are three currencies are declared valid by the
  government of Indonesia on October 1, 1945, the Japanese currency, the Dutch East Indies
                            currency, and currency De Javasche Bank.

                   Netherlands Indies currency and currency bank Javasche De

Among these three currency exchange rate experienced a sharp decline in the Japanese currency.
Circulation to reach four billion, so the Japanese currency is a source of hyperinflation. Layers of
society who suffer most are farmers, because they're the most widely kept the Japanese currency.

                         Japanese currency (Dai Nippon Teikoku Seihu)

  Hyperinflation due to economic turmoil exacerbated by policies Commander AFNEI (Allied
Forces Netherlands East Indies) Lieutenant General Sir Montagu Stopford is on March 6, 1946
 announced the enactment of the NICA currency throughout Indonesia which was occupied by
troops AFNEI. This policy protested loudly by the government of Indonesia, because it violates
the agreement that each party should not be issued a new currency for the absence of a political
   settlement. But the protest was ignored by AFNEI. NICA currency AFNEI used to finance
military operations in Indonesia and also disrupt the national economy, so it will come a crisis of
    confidence of the people of the ability of the government of Indonesia in overcoming the
                                  national economic problems.
 Because of his protest is not respected, then the government of Indonesia issued a policy that
 prohibits the people of Indonesia using NICA currency as a medium of exchange. This step is
very important because the circulation of NICA currency outside the control of the government
            of Indonesia, which has hindered the improvement of national economy.

     Therefore AFNEI not revoke enforcement NICA currency, then on October 26, 1946 the
government of Indonesia introduced a new currency ORI (Oeang Republic of Indonesia) as legal
  tender throughout the territory of Indonesia. Since then the Japanese currency, the Dutch East
  Indies currency and currency De Javasche Bank declared no longer valid. Thus there are only
 two applicable currencies are ORI and NICA. Each currency is recognized only by the issuing.
 So ORI is only recognized by the government of Indonesia and the currency is only recognized
   by the NICA AFNEI. People turned out to give more support to the ORI. This has a political
      impact that more pro-people government of Indonesia from the government as the only
                                      supported NICA AFNEI.

To set the exchange rate with foreign currencies ORI in Indonesia, the government of Indonesia
       on November 1, 1946 to change the leadership of the Foundation Center Margono
    Djojohadikusumo Bank became Bank Negara Indonesia (BNI). A few months before the
government also has changed the Japanese occupation government banks become Shomin Ginko
Bank Rakyat Indonesia (BRI) and Kyoku be Tyokin Postal Savings Office (KTP) which changed
 its name in June 1949 the Postal Savings banks, and finally in 1950 became the State Savings
  Bank ( BTN). All of these banks function as commercial banks are run by the government of
  Indonesia. Its main function is to collect and distribute public funds and service providers in
                                          payment traffic.

                                 Terbentuknya Bank Indonesia

 Long before the arrival of the west, the archipelago has become a center of international trade.
 Meanwhile, in mainland Europe appears simple banking institutions, like Bank van Leening in
      the Netherlands. Banking system was then taken by western nations which expands the
  archipelago at the same time. VOC in Java in 1746 founded the Bank van De Leening which
later became Bank Courant De Bank van en Leening in 1752. Banks was the first bank was born
 in the archipelago, the precursor of the banking world in the next period. On January 24, 1828,
    the Dutch Government set up a bank with a circulation De Javasche Bank (DJB). Over the
    decades the bank operates and develops according to a ruler Oktroi of the Kingdom of the
                         Netherlands, until finally enacted Wet DJB 1922.

  Japanese occupation period had stopped activities and banking DJB Dutch East Indies for a
  while. Then the revolution came, the Dutch East Indies had dualism of power, between the
   Republic of Indonesia (RI) and the Nederlandsche Indische Civil Administrative (NICA).
   Banking was divided into two, DJB and Dutch banks in the region whereas NICA "Poesat
Jajasan Bank Indonesia" and Bank Negara Indonesia in the territory of Indonesia. Round Table
Conference (RTC) in 1949 to end the conflict Indonesia and the Netherlands, defined later DJB,
the central bank for the United States of Indonesia (RIS). This status continued to survive until
 the return of the unitary state of Indonesia. Next as a nation and a sovereign country, Indonesia
   nationalized central bank. So since July 1, 1953 DJB transformed into Bank Indonesia, the
                             central bank for the Republic of Indonesia.

  Many people forget, that Yogyakarta for four years had become the capital of the Republic of
 Indonesia. Precisely on January 4, 1946 until December 27, 1949 the capital of the Republic of
                                    Indonesia in Yogyakarta.

 Migration of the capital of Indonesia when it was not without reason, the situation in Jakarta at
that time and unsafe conditions of the government of Indonesia standstill because of the elements
 of opposites. On one side there are the Japanese forces who held satus quo, on the other side of
 the allies diboncengi NICA. In short, Jakarta increasingly precarious situation and the safety of
 the nation's leaders were threatened. The initiative of HB IX, the capital of Indonesia moved to
       Yogyakarta. Hijra is the capital of Indonesia on the advice and initiative of Sri Sultan
  Hamengkubuwono IX and of the political problems the nation Yogyalah coordinated. All that
                       can be done well thanks to the leadership of HB IX.

 Yogya chosen as the capital of Indonesia because of political views to the front and Sultan HB
IX courage to take risks. So that it can be said HB IX and its people are connective RI survival in
 the face of Dutch military aggression. Sri Sultan Hamengkubuwono IX is an intellectual actor
 who has a multi-status. In addition to the King, head of regional, defense minister, Sultan is the
     key person and negotiator with the Dutch, as well as key figures in the Indonesian civil
 bureaucracy. Sri Sultan Hamengkubuwono IX, which originally called GRM Dorojatun, since
 the Sultan was appointed March 18, 1940, succeeding his father Sri Sultan HB VIII is close to
 the people and of course he understood people's aspirations, including the suffering and hopes
                                  during the Dutch and Japanese.

 Because of this capital movement is all the money ORI published in 1946 s / d in 1949 which
ORI series II, III, IV and New ORI listed kata2 Djokjakarta. Not anymore Djakarta as in series I.

                            ORI Series I (Djakarta, October 17, 1945)
ORI Series II (Djokjakarta, 1 Djanuari 1947)

 ORI Series III (Djogjakarta, 26 July 1947)

ORI Series IV (Jogjakarta, August 23, 1948)
New ORI Series (Djogjakarta, August 17, 1949)

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