Ahead of North Sumatra elections, Counterfeit Money Circulation Predicted to be Up 15 Per

KBR68H, Medan-Bank Indonesia (BI) noted the increase in findings of counterfeit money by the banking system in North Sumatra. During the period from January to December 2012, the number reached 2,006 notes, with a nominal value of USD 103,782 million, an increase of nearly 20 percent over the same period in 2011, of which there were only 1,881 notes.

Earlier this year, the Central Bank also estimated that there would be around a 10-15 percent increase in the amount of counterfeit money found in North Sumatra. These estimates are due to the gubernatorial elections, which are to be held on March 7.  Typically during every election process the movement of cash intensifies due to increased economic activity and the impact of electoral politics on the informal sector.

Deputy Director of the Division of Economic and Monetary BI Region IX North Sumatra, Aceh, Kahf Zulkarnain, said the increase in circulation of fake currency ahead of political events is a condition that almost always takes place when local election events, as well as head of state, are approaching. Although BI cannot determine the exact amount of the increase, Medan, a strategic region, could potentially reach the maximum estimated.

However, Kahf recognized, the condition is still hypothetical and still regarded as a mere economic issue. Until there are criminal and political crimes. "Because in addition to political interests, the demand for cash in the informal sector has increased. And this creates susceptibility for the circulation of counterfeit money," he said.

With a projected increase of 15 percent, BI has asked the public to increase their awareness of counterfeit money. The public has been asked to check any money received in order to minimize losses. BI also hopes the community can proactively report any counterfeit money that is found. Because even the money cannot be replaced, the public report may be used to stifle additional circulation of counterfeit money.

"There is no need to feel uncomfortable doing an inspection process when accepting cash. Look, touch, hold it up to the light. Also submit a report to the police if you find counterfeit cash. Do not be afraid of suspects. There are regulations in place to ensure that the person reporting will not become the suspect," he added.

Based on 2012 BI data, the most commonly found counterfeit notes are Rp50 thousand.  Also common are notes in denominations of Rp100 thousand, Rp20, and Rp10 thousand. Further alarming are reports of a wide circulation of counterfeit currency in Rp2 thousand Rp5 notes.

BI confirms that it will soon print new currency with a more complicated design, in order to exceed current counterfeit printing technology. "We hope that the new currency will have a more complicated design, so that it can stem the circulation of counterfeit cash. We will also intensify dissemination to the public to raise the awareness of counterfeit money. The ability of the public to recognize counterfeit money is a good thing," he concluded.