ORI and the struggle against colonialism

ORI and the struggle against colonialism

The history of Indonesian money is broadly divided into two
periods: 1945 to 1949 and 1950 to 1990.

When Indonesia declared independence, only Japanese banknotes
were used as legal tender. The Indonesian government, under
Sukarno and Hatta, was not yet capable of issuing a national
currency.

After the establishment of the Banknote Printing Organizing
Committee, money printing began with glass negative materials
processed by state publishing company Balai Pustaka and offset
printing by the state printing house at Salemba, Jakarta. The
Ministry of Information was in charge of money production,
starting in January 1946.

On October 29, 1946, the Indonesian government issued the
national currency, known as Oeang Repoeblik Indonesia (ORI, or
Republic of Indonesia banknotes). It was announced through the
Yogyakarta station of the national broadcasting service Radio
Republik Indonesia (RRI) by Vice President Mohamad Hatta, who
explained the money's importance in establishing the republic's
credentials.

From October through December 1946, the government issued
banknotes five times. But the currency of the Netherlands Indies
Civil Administration (NICA) was also used by the public. The
Allies (predominantly the Netherlands and the UK) were worried by
the circulation of ORI notes, so Commander Sir Montague Stopford
announced to the public that only the NICA money was valid in
Allied-held territory.

When the Dutch launched the first military aggression on July
21, 1947, the NICA currency prevailed in some parts of Indonesia.
The Indonesian Military at that time strived to suppress the
supply of NICA banknotes and continued to popularize the ORI as
the legitimate currency in Indonesia's guerrilla enclaves.

March 1, 1949, was a historic day for the existence of the
ORI, when Indonesian troops succeeded in occupying Yogyakarta for
about six hours. Subsequently, the value of ORI notes rose
drastically against the Dutch money.

U.S. expert in Indonesian affairs George Kahin, in his book
Nationalism and Revolution in Indonesia (1963), writes that
before the March 1 attack, the exchange rate of the rupiah
against NICA money stood at 500:1; it strengthened to 130:1 and
90:1 after the Yogya occupation.

ORI notes, though printed in a simple form, played a major
role in arousing people's patriotic spirits in the national
struggle against the colonists.

Not surprisingly, Prof. Dr. J.K. Gail from the U.S. described
the ORI notes as an instrument of revolution. In his view, ORI
notes assumed the same role as that of continental money, which
was issued by colonies during the American War of Independence
in the 18th century.

The first national currency was mentioned as a means of
national resistance. With the help of farmers, Indonesian
soldiers endeavored to distribute ORI notes to remote regions.
According to writings by Jai Singh Yadav, a guest professor at
the school of literature at Gadjah Mada University, Yogyakarta,
the rising value of ORI notes after the March 1 general attack
indicated the exchange rate's link with the nation's successful
struggle, an indicator of the strength of the republic.

That inspired the board of the March 1, 1949 General Attack
Foundation to accept the idea of the late Maj. Gen. Nichlany
Soedardjo, as foundation chairman, to publish Banknotes and Coins
from Indonesia 1945-1990 (BACFI) in cooperation with Perum Peruri
(the state mint).

The 303-page book, which first appeared in 1991, describes, in
its preface, the value of ORI notes in the struggle against
colonialism: "Until the Republic of Indonesia, proclaimed by
Sukarno and Hatta on August 17, 1945, promptly issued ORI notes,
many might have doubted that the republic actually existed. That
was because the Dutch circulated NICA currency as a way of
demonstrating their power after Japan's surrender and Indonesia's
independence".

-- Bambang Parlupi