The fake money menace

The fake money menace

With hordes of problems still plaguing the Indonesian economy
and no speedy solutions in sight, reports over the past week of
the seizure of billions of rupiah worth of counterfeit money
alone make one wonder: Considering the state of disorder that
exists in many, if not most, of the state apparatuses, will the
authorities be able to put things in order in not too long a time
span?

Far from immaterial, such a question is particularly relevant.
As life hasn't tangibly improved for vast majority of
Indonesians, the country can hardly afford to have counterfeiters
add inflation to the already overburdened Indonesian economy.

According to the country's central bank, Bank Indonesia, about
Rp 4.44 billion of fake rupiah notes were circulating in 1997, Rp
6.16 billion in 1998 and Rp 6.27 billion in the first 11 months
of 1999. While this amounts to only a small percentage of the
value of the counterfeit rupiah that were confiscated during the
same period, the knowledge that counterfeiters have been
operating -- and may still be operating -- their clandestine
trade with relative ease does not help to allay the public's
fears that, sooner or later, the market will be flooded with fake
money, with all the consequences that may bring.

To the public at large, it is no great consolation to hear
Bank Indonesia's director of circulation control H.Y. Susmanto
explain that only older rupiah bills, usually of smaller
denominations, have become dated enough in terms of printing
technology to be successfully faked by counterfeiters. Rupiah
bills in larger denominations -- such as Rp 50,000 and Rp 100,000
are printed using up-to-date technology that make them difficult
to fake convincingly.

Still, police detectives in East Jakarta apprehended nine men
last week in possession of fake Rp 50,000 bills worth a total of
Rp 100 million. In the hillside resort town of Cisarua, southeast
of Jakarta, Bogor Police officers seized Rp 1.87 billion in
counterfeit notes in the same denomination.

In the meantime, little has been heard in the way of official
explanation of what the authorities have been doing about the
counterfeiting of foreign currencies, especially the U.S. dollar.
Last week, customs and excise officials at Soekarno-Hatta
International Airport were reported to have confiscated $16,000
worth of fake American dollar notes and arrested two men in
connection with the find.

Under Indonesian law, anyone found guilty of counterfeiting
rupiah banknotes faces a maximum penalty of 15 years in prison.
Given the apparent proliferation of counterfeiting, and
considering the grave condition of the Indonesian economy, it
seems to be time that the government together with the House of
Representatives consider passing a new law to deter
counterfeiters.

The successful establishment of political stability in
Indonesia depends a great deal on the successful revival of the
country's economy. Without stability, effective development and
progress, both economic and political, will remain a dream. To
some degree at least, the circulation of counterfeit money puts a
spoke in the wheel of the country's progress.

No one denies that the difficulties the Indonesian national
police have to face at present are formidable. After decades of
being a part of the military, not only must the Indonesian police
force begin to reorganize itself into an effective force to
protect the people, it must make do so with inadequate personnel
and equipment. Nevertheless, the job must be done. It is not an
easy task, but its results will be worth the effort -- for both
the police and the nation.