Indonesian Political, Business & Finance News

Flashback: Reasons Why Jokowi Pushed for the Cash Restriction Bill

| | Source: KOMPAS Translated from Indonesian | Regulation
Flashback: Reasons Why Jokowi Pushed for the Cash Restriction Bill
Image: KOMPAS

JAKARTA, KOMPAS.com - The Cash Restriction Bill (RUU Pembatasan Uang Kartal) has returned to discussions following a proposal from the Corruption Eradication Commission (KPK).

The KPK is advocating for regulations that limit the use of cash or physical currency during election stages.

KPK Spokesperson Budi Prasetyo stated that rules restricting cash transactions in elections are deemed essential, given that the use of physical cash still dominates electoral processes.

He explained that this view stems from a corruption prevention study involving four groups of informants: representatives from political parties, election organisers, electoral experts or observers, and academics.

The study, conducted by the KPK’s Monitoring Directorate in 2025, has also been presented to President Prabowo Subianto and DPR Speaker Puan Maharani.

The KPK considers limiting cash transactions an urgent step amid the prevalence of money politics practices using physical cash.

This phenomenon is viewed as a gateway to recurring political corruption that is difficult to monitor.

“Therefore, restricting cash transactions is seen as one strategic step in corruption prevention efforts,” Budi said.

In 2023, Jokowi urged the DPR to promptly discuss the Cash Restriction Bill and the Asset Confiscation Bill.

Jokowi made this statement while delivering directives at the World Anti-Corruption Day commemoration (Hakordia) held by the Corruption Eradication Commission (KPK) in 2023.

According to Jokowi, legal regulations on cash restrictions are an important legal basis for eradicating corruption, in addition to the Asset Confiscation Bill.

“I hope the government and DPR can immediately discuss and complete (the Asset Confiscation Bill), followed by the Cash Transaction Restriction Law,” Jokowi said at Istora, Senayan, Central Jakarta, on Tuesday (12/12/2023).

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