Bank Indonesia Converts Damaged Banknote Waste into Electricity Fuel
Bank Indonesia’s Bengkulu Representative Office is converting waste from damaged banknotes, previously discarded, into raw material for electricity generation. This initiative is considered more beneficial for communities, particularly in meeting electricity needs.
Wahyu Yuwana Hidayat, Head of Bank Indonesia’s Bengkulu Representative Office, stated that his office has signed a cooperation agreement with PT PLN Nusantara Power Unit Generation (UP) Bukit Asam, located in Muara Enim, South Sumatra, to manage the damaged banknote waste.
“Previously, unusable damaged banknotes were shredded and discarded at landfills, but now we are converting them into electricity, which is more beneficial for the community,” he said when met in Bengkulu on Monday, 9 March 2026.
He explained that damaged banknote waste contains energy almost equivalent to coal. Whilst one kilogramme of coal can produce energy of 5 kilocalories, one kilogramme of damaged banknote waste produces 4 kilocalories.
“Some time ago, we sent 9 tonnes of damaged banknote waste. If 1 kilogramme of banknote waste can generate 1 kWh of electricity, then 9 tonnes can produce 9,000 kWh of electricity,” said Wahyu.
He added that because banknotes are made of cotton, the waste has a more stable calorific value and produces cleaner emissions compared to some types of low-calorie coal. Beyond its usefulness, this innovation is more environmentally friendly.
“The electricity generated can naturally increase the electricity supply, particularly in Sumatra. This measure not only reduces waste but also brings electricity to communities,” said Wahyu.
He urged the public not to hesitate in exchanging damaged money at Bank Indonesia’s official service, so they receive the appropriate value. Many people have been resorting to unofficial exchange services, which offer unfavourable rates.
Meanwhile, Teguh Saputra from the Rupiah Currency Management Implementation Unit at Bank Indonesia’s Bengkulu Representative Office, stated that the damaged currency exchange service operates every Tuesday and Thursday, with prior registration required.
He outlined several criteria for Rupiah notes that can be exchanged by the public. First, damaged or physically defective banknotes must be more than two-thirds of the original size, with authenticity features such as the main image, watermark and serial number still recognisable.
Second, damaged notes must be in one piece. If split, both serial numbers on the note must be complete and identical. “Even notes damaged by fire can be exchanged, provided their physical size still meets the requirements,” he said.
Third, for damaged or defective metal currency, the physical condition must be more than half the original size, with authenticity features still recognisable.
Fourth, currency unfit for circulation—notes that are creased, worn or have minor defects but remain intact. Finally, currency that has been withdrawn from circulation and no longer serves as legal tender.
“Currency can be exchanged as long as it has not exceeded the 10-year deadline since withdrawal,” said Teguh.