Legal Literacy - Exchanging new money is one of the traditions that can be found in most regions of Indonesia. This has become a new business opportunity for some people, namely by providing money exchange services which are generally located on the side of the highway.
This article discusses in depth the phenomenon of exchanging new money on the roadside and how the legal rules apply to this culture based on laws and Islamic law.
The Phenomenon of Exchanging New Money on the Roadside
Exchanging new money has become a routine activity carried out every month of Ramadan or before Eid al-Fitr. This moment is used by new money exchange service providers on the roadside. Their target market is generally people who don't have much time to queue to exchange money at the bank.
Even though there are no specific sanctions for new money exchange service providers on the roadside, the public is still advised to exchange money at official institutions, such as Bank Indonesia, to avoid crimes in the form of giving counterfeit money by irresponsible parties.
The Law on Exchanging New Money on the Roadside Based on Law
In legal terms, the provisions regarding currency exchange are regulated in Article 22 of the Currency Law. In order to meet the need for money in the community in sufficient nominal amounts, types of appropriate denominations, and in suitable condition for circulation, rupiah money circulating in the community can be exchanged with the following provisions:
- Rupiah exchange can be carried out in the same denomination or other denominations; and/or
- Exchange of worn and/or partially damaged Rupiah due to burning or other causes is replaced with the same nominal value.
Basically, rupiah exchange is carried out by several institutions, such as Bank Indonesia, banks operating in Indonesia, and other parties appointed by Bank Indonesia. Furthermore, this rupiah exchange has been further regulated in PBI 21/2019 and Regulation of the Member of the Board of Governors of BI 19/2017.
Rupiah exchange services are carried out for exchanging rupiah money in the same or different denominations and/or replacing unfit rupiah money. This has been regulated in Article 23 paragraph (2) of PBI 21/2019.
Meanwhile, Article 4 of the Regulation of the Member of the Board of Governors of BI 19/2017 explains that rupiah exchange services are carried out in the office and/or outside the office of Bank Indonesia and/or in the office and/or outside the office of other parties appointed by Bank Indonesia.
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