Bank Indonesia Regulation Number 3 of 2026 Tightens the Management of Rupiah Currency and the Obligations of Rupiah Currency Processing Service Providers

Introduction

On 25 March 2026, Bank Indonesia issued Bank Indonesia Regulation Number 3 of 2026 on Paper and Metal Rupiah Currency (“PBI 3/2026”), which took effect on 31 March 2026. This regulation governs the management of paper and metal Rupiah currency as legal tender, in order to ensure the availability of currency that is of high quality, adequate, and reliable throughout the country.

Bank Indonesia considers that Bank Indonesia Regulation Number 21/10/PBI/2019 on the Management of Rupiah Currency (“PBI 21/2019”) is no longer aligned with legal developments and the evolving strategic environment in the management of paper and metal Rupiah currency. PBI 3/2026 responds to the mandate of Law Number 4 of 2023 on the Development and Strengthening of the Financial Sector (P2SK Law), which affirms that the Rupiah is not merely a medium of exchange, but also a vital instrument reflecting national sovereignty and economic strength. Bank Indonesia is committed to exercising its authority in currency management in a more effective, efficient, transparent, and accountable manner, while aligning the implementation of currency processing services with the Rupiah Currency Management Blueprint 2030 (BPPUR 2030).

 

Comparison

PBI 3/2026 revokes and replaces PBI 21/2019. The following is a comparison table between PBI 3/2026 and PBI 21/2019:

 

Key Provisions

Operational Requirements and Obligations of PJPUR

Article 48 paragraph (1) requires every entity intending to provide supporting services for the circulation of paper and metal Rupiah currency to obtain a PJPUR business license from Bank Indonesia. Pursuant to Article 50, a prospective PJPUR must be established as a limited liability company, with members of the board of directors and the majority of the board of commissioners domiciled in Indonesia. Under Article 51, PJPUR must meet a minimum capital requirement of IDR 3,000,000,000, which must not be sourced from loans.

If a PJPUR intends to open a branch office, Article 56 requires the PJPUR to obtain operational approval from Bank Indonesia. In establishing a branch office, the PJPUR must meet the following requirements:

1. The branch office establishment plan is included in the PJPUR business plan; 
2. Fulfillment of additional capital requirements; 
3. Possession of an operational expansion permit from the Indonesian National Police; 
4. Use of facilities and infrastructure in accordance with standards set by Bank Indonesia; 
5. Availability of human resources with adequate competence in accordance with Bank Indonesia regulations on competency standardization in the payment system sector; 
6. Availability of a business continuity plan for local operational activities; and 
7. Availability of standard operating procedures for each type of PJPUR business activity. 

Pursuant to Article 62, in conducting business activities for processing Paper and Metal Rupiah Currency, a PJPUR must:

1. Establish and implement effective risk management; 
2. Maintain insurance coverage for all PJPUR activities; 
3. Prepare and submit a PJPUR business plan to Bank Indonesia; 
4. Obtain approval from Bank Indonesia for any changes to members of the board of commissioners and/or board of directors; 
5. Enter into agreements for the use of Paper and Metal Rupiah Currency processing services with service users; 
6. Maintain compliance with minimum capital requirements in accordance with Bank Indonesia regulations; 
7. Comply with share ownership composition requirements in accordance with Bank Indonesia regulations; 
8. Use facilities and infrastructure in accordance with standards set by Bank Indonesia; 
9. Meet the quality standards for processed Paper and Metal Rupiah Currency as determined by Bank Indonesia; 
10. Conduct activities using facilities and infrastructure within the capacity determined by Bank Indonesia; 
11. Enhance the competence of human resources in the processing of Paper and Metal Rupiah Currency; and 
12. Comply with all applicable laws and regulations governing PJPUR. 

Furthermore, Article 63 prohibits PJPUR from transferring the execution of its business activities to other parties and from undertaking corporate actions that change majority share ownership within 5 (five) years from the date the business license is first granted.

Responsibilities of Banks Regarding Counterfeit Currency and Monitoring of PJPUR

When conducting deposits and withdrawals at Bank Indonesia, Article 23 requires Banks to:

1. Ensure the accuracy of the amount of Paper and Metal Rupiah Currency in deposit activities; 
2. Ensure that employees and/or other parties conducting withdrawals are duly authorized by the Bank and have registered signature specimens with Bank Indonesia; 
3. Conduct deposits and/or withdrawals of Paper and Metal Rupiah Currency at Bank Indonesia in accordance with Bank Indonesia’s cash service operational hours; 
4. Ensure that Paper and Metal Rupiah Currency in deposit activities does not include currency of doubtful authenticity; and 
5. Submit periodic cashflow projection reports to Bank Indonesia. 

On the other hand, Banks are prohibited from conducting activities other than deposits and/or withdrawals within Bank Indonesia premises, from depositing Paper and Metal Rupiah Currency containing a mixture of fit currency and Unfit Currency (“UTLE”) exceeding the limits set by Bank Indonesia, and from depositing Paper and Metal Rupiah Currency containing mixed denominations and/or years of issuance.

Negligence in preventing the circulation of counterfeit currency may result in sanctions under Article 24 in the form of a written warning and a fine of IDR 1,000,000 for each sheet or coin of counterfeit currency identified. Where a Bank decides to outsource deposit or currency processing activities to a PJPUR, Articles 28 and 35 require the Bank to ensure that its partner holds a valid license. In addition, the Bank remains responsible for monitoring the operational performance and risk management practices of the PJPUR.

Standards for Replacement of Unfit Rupiah Currency (UTLE)

Article 78 classifies UTLE into two categories, namely Worn Rupiah Currency and Damaged Rupiah Currency. For members of the public intending to exchange damaged paper currency, Article 79 provides that Bank Indonesia will replace it at full nominal value subject to the following conditions:

1. The damage to the paper currency is not caused or reasonably suspected to be caused intentionally; 
2. The remaining physical portion of the currency exceeds 2/3 (two-thirds) of its original size; and 
3. The authenticity features of the damaged paper currency remain identifiable or recognizable. 

If the paper currency is reduced to equal to or less than 2/3 of its original size, the replacement request will be rejected. For damaged metal currency, Article 80 provides that full nominal replacement will be granted by Bank Indonesia as long as the remaining physical portion of the coin exceeds 1/2 (one-half) of its original dimensions and there is no evidence of intentional damage.

 

Sanctions

Sanctions for Deposits and Withdrawals by Banks

Bank Indonesia imposes sanctions in the form of written warnings and a fine of IDR 1,000,000 for each sheet or coin of counterfeit Rupiah deposited with Bank Indonesia (Article 24 paragraph (1) letter d). Bank Indonesia may also limit or reject deposit and withdrawal services where a Bank commits procedural violations (Article 24 paragraph (1) letters a and c), such as failing to ensure the accuracy of currency amounts or violating cash service operational hours.

Where a Bank mixes fit currency with unfit currency beyond the tolerance limit, Bank Indonesia issues a written warning; and if such violation occurs up to three times, Bank Indonesia imposes a fine of IDR 1,000,000 per Bank office (Article 24 paragraph (2) letter b). Bank Indonesia will also limit cash services where a Bank mixes different denominations and years of issuance in a single deposit (Article 24 paragraph (2) letter c).

Sanctions for Supervision of Partners (PJPUR)

Bank Indonesia imposes sanctions in the form of cash service restrictions and written warnings (Article 29 paragraph (1)) on Banks that appoint PJPUR without proper licensing and operational approval. Sanctions in the form of written warnings and/or service restrictions are also imposed on Banks that fail to monitor the performance of currency processing and the implementation of risk management by their PJPUR partners, in accordance with Article 29 paragraph (2), Article 36, and Article 68 paragraph (3).

License Revocation Sanctions for PJPUR

Bank Indonesia may take firm action against PJPUR that operate or open branch offices without official approval by temporarily suspending business activities at such offices (Article 56 paragraph (3) letter a). If the PJPUR fails to comply with such suspension within 30 days, Bank Indonesia may revoke the relevant PJPUR’s business license (Article 56 paragraph (3) letter b). Bank Indonesia is also authorized to revoke a PJPUR business license (Article 64 letter c) for violations of Article 63 paragraph (1), such as changing majority share ownership within five years of operation or transferring the execution of its business activities to another party.

Sanctions for Late Reporting

Bank Indonesia requires Banks and PJPUR to maintain discipline in submitting reports (Article 99 paragraph (2)). Under Article 101 paragraph (1) letter a, Bank Indonesia may impose a fine of IDR 50,000 for each day of delay in submitting periodic reports (with a maximum fine of IDR 1,000,000 per report). Meanwhile, for Banks or PJPUR that fail to submit periodic reports altogether, Bank Indonesia imposes a direct fine of IDR 1,000,000 per report for the relevant period pursuant to Article 101 paragraph (1) letter b).

 

Transitional Provisions

Article 109 provides that PJPUR previously categorized as “Category One” and having capital below IDR 3,000,000,000 are required to fulfill the capital increase within a maximum period of 2 (two) years from 31 March 2026. During the period prior to such capital fulfillment, their business activities are limited to currency distribution and vault storage services. Failure to meet the capital requirement within the two-year period may result in sanctions in the form of business license revocation.

In addition to capital requirements for PJPUR, Article 110 provides for the postponement of the application of sanctions for the banking sector. The imposition of a fine of IDR 1,000,000 per sheet of counterfeit currency in deposit and withdrawal activities will only become effective on 1 January 2027. Prior to that date, Banks committing violations will continue to be subject to the previous fine formula, namely payment of 10 (ten) times the total nominal value of the counterfeit currency deposited. Furthermore, Banks currently holding the status of “entrusted cash managers” are given a deadline to transform and meet the qualifications as “partner cash centers” no later than 30 June 2026.

 

Closing

PBI 3/2026 reforms the governance of Rupiah currency to establish a more efficient, transparent, and accountable management system. This regulation standardizes the minimum capital requirement of IDR 3 billion for PJPUR, recognizes the existence of Digital Rupiah, and strengthens operational standards and banking obligations in monitoring the performance of their currency management partners. In addition to clarifying the technical requirements for the replacement of UTLE for the public, PBI 3/2026 enforces discipline through sanctions, ranging from fines for late reporting, fines of IDR 1 million per sheet of counterfeit currency (effective January 2027), to business license revocation, while providing a two-year transition period for PJPUR to comply with the new capital requirements.