Article

Counterfeit Money in Indonesia: A Persistent Threat to Public Trust and How to Fight It

Author: Agus Budi Harto, 2026-10-14 14:29:49


Background

Indonesia, as one of the largest cash-based economies in Southeast Asia, continues to face the challenge of counterfeit currency circulation. While digital payments are growing rapidly in urban centers, physical cash remains dominant in traditional markets, small businesses (UMKM), and rural areas like South Sulawesi. This reliance on cash makes the authenticity of the Rupiah a matter of both economic stability and daily survival for millions.

According to the latest joint release from the Indonesian National Police (Polri) and Bank Indonesia (BI) in May 2026, authorities destroyed 466,535 counterfeit Rupiah notes. These notes were collected from public reports, banks, and Cash Processing Service Providers (PJPUR) during the period from 2017 to November 2025. This massive destruction operation highlights that while the country has sophisticated currency security, counterfeits still find their way into circulation.

The Problem: Real Financial Loss for Ordinary People

The core problem with counterfeit money is that the loss is borne 100% by the person who receives it. As stated by Polri and Bank Indonesia, "counterfeit money not only causes economic loss to the public, but can also disrupt economic stability and reduce public trust in the currency."

BI reports that the ratio of counterfeit findings has actually improved, dropping from 5 pieces per million (ppm) in 2023, to 4 ppm in 2024-2025, and down to 1 ppm by April 2026. However, the absolute numbers remain alarming.

From 2025 to April 2026 alone, Bareskrim Polri uncovered 252 counterfeiting cases, arresting 1,241 suspects and seizing 137,005 counterfeit Rupiah notes and 17,267 counterfeit US dollar notes. Other large-scale cases show the scale of potential damage: in South Tangerang, police seized around 360,000 sheets of Rp100,000 counterfeit notes with a total nominal value reaching Rp36 Billion, while in another Jakarta operation, Rp22 Billion in fake notes were seized before they could circulate.

For large syndicates the numbers are in billions, but for the public, the loss is more personal. Police in Malang recently confiscated only 13 fake notes worth Rp1.3 Million from two women who used the classic modus: buying small items worth Rp20,000 with a fake Rp100,000 note to get Rp80,000 in genuine change. Economic observers note that this crime is most often detected among lower-middle-class communities, who tend to hold physical cash and are more vulnerable to viral scams involving elderly sellers whose money is swapped with fakes.

The Solution: Vigilance and the 3D Method

The solution cannot rely on law enforcement alone. Bank Indonesia promotes a simple public education method called 3D: Dilihat, Diraba, Diterawang (Look, Touch, Hold to Light).

  1. Dilihat (Look): Check for sharp colors and color-shifting ink. Genuine notes have a security thread embedded, not just glued on.
  2. Diraba (Touch): Authentic Rupiah paper feels coarse, not smooth like HVS paper. The main image, denomination numbers, and the text "Bank Indonesia" have a raised, embossed feel.
  3. Diterawang (Hold to Light): When held up to light, a watermark of the national hero and the BI logo (electrotype) should appear seamlessly.

Beyond the 3D method, practical habits are crucial: avoid exchanging money with unofficial street vendors, especially before Eid al-Fitr; be cautious of buyers who purchase a very cheap item with a large denomination note; for transactions over Rp1 Million, use bank transfers or QRIS; and small merchants are advised to keep a small UV light to check for invisible fibers.

In the digital era, technology can add an extra layer of protection. Tools like G-Money - Photo Quality Check are emerging to help users quickly assess the quality and details of a banknote photo before accepting it. The app can be downloaded on the App Store: G-Money. While it does not replace the official 3D check, it can serve as a useful second opinion tool for merchants and consumers who frequently handle cash.

If you suspect you have received a counterfeit note, do not attempt to spend it again, as possession and circulation of counterfeit money is punishable by up to 10-15 years in prison. Keep it separate, note the characteristics of the person who gave it to you, and take it to the nearest bank or Bank Indonesia Representative Office for laboratory verification.

Result: A Declining Trend, But Collective Responsibility Remains

The result of joint efforts between Polri, Bank Indonesia, and the formation of Botasupal (Counterfeit Money Eradication Coordinating Board) is positive. The declining ratio from 5 ppm to 1 ppm and the destruction of nearly half a million fake notes show that the system is working.

However, as long as cash remains king in many parts of Indonesia, the threat will not disappear completely. The final result depends on public awareness. When every individual at a market in Parepare or a minimarket in Cimahi takes two seconds to apply the 3D check, the economic incentive for counterfeiters collapses.

References

  1. Polri and Bank Indonesia Destroy 466,535 Counterfeit Rupiah Notes, Strengthen Synergy to Safeguard Rupiah Sovereignty. Tribratanews Polres Kotamobagu, Jakarta Polres.
  2. Bareskrim and Botasupal Destroy 466,535 Counterfeit Notes, Polri Uncovers 252 Cases. Nawawi News, Journal Reportase, Majalah Fakta.
  3. Bank Indonesia Data on Counterfeit Rupiah Findings: Trend Decreasing from 5 ppm (2023) to 1 ppm (April 2026). Investor.id
  4. Polda Metro Jaya Uncovers Counterfeit Money Production of Rp36 Billion in South Tangerang. Beritasatu, 2024.
  5. Polda Metro Confirms Rp22 Billion in Counterfeit Money Has Not Yet Circulated. BeritaNasional.com
  6. Two Women in Malang Arrested for Shopping with Rp1.3 Million Counterfeit Money. Jatimku.com
  7. Economist: Finding of Rp22 Billion Counterfeit Disrupts Rupiah Credibility, Most Often Detected Among Lower-Middle Class. Validnews.id
  8. Social Media Reports on Counterfeit Cases in Cimahi (Female Ojol Driver) and Bandung (Siblings Using Cake Paper). Instagram Reels, September-October 2026.
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