BI Affirms Digital Money Will Not Replace Cash, Both Are Complementary

Bank Indonesia (BI) has confirmed that the presence of digital money will not replace the role of cash in society. Both are projected to complement each other as legal tender in Indonesia.

Deputy Governor of BI, Ricky Perdana Gozali, explained that physically and within the economic system, the rupiah in digital and cash forms have an equal role. “Digital and cash, the rupiah physically or economically, do not replace each other; they are not substitutes but complements,” said Ricky during a press conference following the BI Board of Governors Meeting in Jakarta on Wednesday (19/8).

According to Ricky, BI is committed to continuing to develop digitalisation and the use of physical rupiah simultaneously. This step aims to provide flexibility and choice for the public in conducting various types of transactions according to their needs.

Although transaction digitalisation is growing massively, the use of cash is still growing, albeit with a flattening trend. BI considers it important to continue providing understanding about the rupiah to all levels of society to support the digitalisation ecosystem being built.

As part of these efforts, BI consistently runs the ‘Cinta, Bangga, Paham Rupiah’ campaign. This campaign emphasises that the rupiah is not merely a medium of exchange, but a symbol of sovereignty and national unity. Through the ‘Paham Rupiah’ aspect, the public is encouraged to transact wisely and save.

BI’s latest data shows a significant surge in the digital sector. In July 2026, digital transaction volume reached 5.50 billion transactions, growing 28.69 percent year-on-year (yoy).

On the other hand, physical money management also continues to show a positive trend. Currency in circulation (UYD) in the same period grew 15.10 percent (yoy) to Rp1,314 trillion. This figure reinforces that physical money still plays a vital role in the community’s economic activities alongside digital instruments.