BI Agrees on Limiting Cash Transaction

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  • TEMPO.CO, Jakarta - Bank Indonesia (BI) agreed with the proposal from the Center for Financial Transaction Reporting and Analysis (PPATK) for the government to regulate cash transactions; limiting the amount to a maximum of Rp100 million.

    BI's director for payment system policy Erwin Haryono said Thursday night, April 19, that it is possible that the proposal is related to the election or political activities. Nevertheless, he said that it is in line with the central bank's non-cash campaign with the purpose of getting clear records of all transactions.

    Earlier this week, PPATK chief Kiagus Ahmad Badaruddin said they agree to the issuance of a regulation that limits cash transaction as a way to prevent corruption.

    "This step needs to be done to limit corruptors' movements, as well as reduce chances of bribery and other financial crimes," Kiagus said in Jakarta, Tuesday, April 17.

    According to PPATK's analyses from 2013 to 2018, there are 1,958 indications of corruption and 113 indications of bribery, most of which are done using cash transactions. 

    The regulation draft on the limitation of cash transactions will be submitted to the House of Representatives (DPR) soon, before it is passed as a law. The bill will limit the use of cash by corporations and individuals.