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