NGO calls on BI to nix fake money

JAKARTA: Non-governmental organization Combating Counterfeit and Financial Crime (CCFC) urged the central bank to withdraw the current banknotes immediately after the July 5 direct presidential election to prevent an increase in counterfeit money in circulation and higher inflation.

CCFC chief information officer Sri Arsita Mutiara said on Tuesday that the circulation of counterfeit money ahead of both the April 5 legislative election and the upcoming presidential election had caused inflation to reach 5.92 percent during the first five months of this year.

According to her, ahead of the July 5 election, around Rp 2 billion in fake money, especially in the form of Rp 100,000 and Rp 50,000 banknotes, had been circulating, but the central bank refused to withdraw the counterfeit money, arguing that it had a set schedule for the withdrawal some time next year.

Based on CCFC's data, around Rp 6 billion in fake money was circulated during the 1999 general election. -- JP.