BI Warns Merchants Against Rejecting Cash, Fines Reach Rp 200 Million

JAKARTA, Investortrust.id — Bank Indonesia warns merchants on Friday, Dec 26, 2025 in Jakarta not to reject cash transactions using valid rupiah banknotes as year-end travel intensifies, a practice that could expose sellers to criminal sanctions and fines of up to Rp 200 million, equal to $12,800.

The reminder followed recent social media reports showing consumers being refused when attempting to pay with cash, a situation BI said could reemerge during the holiday period.

Head of BI’s Communication Department Ramdan Denny Prakoso said Article 33 paragraph 2 of Law No. 7 of 2011 on Currency clearly prohibited any party from refusing rupiah offered as legal payment within Indonesia, except when there was doubt over its authenticity.

“With this provision, what is regulated is the use of the rupiah as legal tender for transactions in Indonesia,” Denny said on Friday.

He explained that rupiah transactions could be conducted using either cash or non-cash payment instruments, depending on the convenience and agreement of the parties involved.

While BI continued to encourage non-cash payments for being fast, efficient, affordable, secure, and reliable, cash remained essential due to Indonesia’s demographic and geographic conditions. “Challenges related to geography and population distribution mean cash is still very much needed and widely used in transactions across many regions,” Denny said.

Chair of the House of Representatives Budget Committee Said Abdullah said merchants refusing rupiah cash payments could face up to one year in prison and fines of as much as Rp 200 million under existing law.

“We need to educate the public and businesses not to arbitrarily reject rupiah payments, because this carries criminal consequences,” Said said in a statement.

He urged BI to intensify public education, stressing that cash rupiah remained Indonesia’s national currency and a valid means of payment.

“Digital payments may grow, but as long as the law has not been revised, everyone in Indonesia is obliged to accept cash rupiah,” he said.

Said added that even advanced economies such as Singapore still allowed cash transactions up to certain limits, underscoring that cashless systems did not eliminate the need for physical currency.

“We fully support non-cash payments, but merchants must not close the option for buyers or partners to pay in cash,” he said.

QRIS Gains Traction

The reemergence of cash-payment issues comes after years of the Quick Response Code Indonesian Standard (QRIS), introduced by Bank Indonesia, becoming a popular payment method, particularly among young, urban consumers. As digital payments gained traction, many merchants grew accustomed to cash-light or cashless operations, creating friction when cash usage resurfaced.

The charts illustrate how QRIS has rapidly evolved from early adoption into deep, habitual usage between 2021 and 2024. Both transaction value and transaction volume rise sharply, showing that QRIS is not only used by more people but is increasingly trusted for higher-value payments. At the same time, steady growth in the number of users and merchants confirms broad ecosystem adoption, particularly among MSMEs. The rising average transaction count and average nominal value per merchant per month indicate that QRIS is becoming embedded in daily business operations rather than used only occasionally.

This structural shift is reshaping how Indonesian merchants accept payments by reducing reliance on cash and replacing it with a single, standardized digital channel. For merchants, QRIS lowers the cost and complexity of managing physical cash, including counting, storage, transportation, and reconciliation, while also reducing exposure to counterfeit money.

Less cash handling also cuts the risk of employee embezzlement or leakage at the point of sale, a common operational challenge for small and medium businesses. With transactions automatically recorded, bookkeeping becomes simpler, more transparent, and easier to audit. Over time, this digital trail strengthens financial discipline, supports access to formal financing, and allows merchants to focus on growing sales rather than managing cash-related operational frictions.